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Farm tenant scenario

IowaBowHunter1983

Well-Known Member
Staff member
Maybe someone on here has dealt with this in the past. I'm actually in the same position with two different tenants ironically.

I didn't terminate either lease before the September deadline. Tenants did not send notice they would not be renting in 2020. I am making plans for 2020 now in conjunction with some minor CRP enrollment. Neither tenant will commit to renting. So it's this wierd situation where nothing was terminated, but there is no agreement nor any verbal commitment. As far as I can tell the law is ambiguous in this scenario. From my perspective, it's like shit or get off the pot... so to speak.

I'm not worried about renting it as I have several options.... just like to have things on order.

I'll talk to my lawyer of course, but anyone had similar situation?
 
Odd situation but I'd guess that if they don't exercise there option to renew for this year when offered, you are free do as you please. I'm guessing there should be some sort of documentation for this to prevent any issues?
 
I don't know enough to advise you on this, but I think that the Iowa State Extension network could possibly have someone that would speak to you on this...if you want to avoid the lawyer fee. You may want to check with them.
 
Good tip for the next farm lease agreement. I now include wording that specifically terminates the lease at the end of the term, that way there's no guessing. If we decide to renew, a new lease is in order, but the old one is done.., no September notice required, termination is stated in the lease terms.
 
Then find another tenant because this is the exact situation you’re in imo

Actually, I read a little more on this subject after making my first post this AM and I am not sure that you would want to do it this way. ^^ Again, contact someone with more knowledge and expertise than I have, but my read is that the former tenant still has "dibs" this spring. Whether they want to, or will, plant this spring, it sounds to me like they have a right to at this stage. Regardless of how it turns out and who is really right...I think it would be prudent to avoid a scenario where the former tenant "shows up" this spring with the planter, etc.

Deerdown, above, has the right idea from what I read. Document it clearly, when it ends, when it starts, rates, etc.
 
The Realestate firm I work for handles a lot of Farm management work the standard practice is to cancel there tenants each year Sept.1 The standard letter includes statements about continuing foward and renewing if both party’s agree. Some tenants have been on theses farms for 20 years. The bigger problem for you is if the ground was certified to your producer last year then they will have to sign off to allow CRP on acres they had previously farmed. I have seen a few time where tenants simply never go in and sign and the application is rejected.
 
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