Deadline to terminate farm leases is Sept. 1

submitted by Sara Berges, Allamakee SWCD

Now is a good time to think about your farm lease for next year.  According to Iowa law, if you want to terminate your rental agreement or make changes in your current lease terms, you must properly serve a notice of termination by September 1. This applies to both cash and crop-share leases, but not custom farming contracts.
 
In 2013, the Iowa Legislature made a change in state law regarding lease termination. The previous law exempted termination notice for parcels under 40 acres.  Now, a written notice of termination is required on all tracts of rented farmland, regardless of size. Farm leases automatically continue as written from year to year unless either party gives a notice of termination. Even an oral lease is automatically renewed if it is not properly terminated.

A form titled “Notice of Termination of Farm Tenancy” is available from the Iowa State University Ag Decision Maker website as AgDM C2-19 and can be found online at www.extension.iastate.edu/agdm/wholefarm/pdf/c2-19.pdf.  
Oral leases are only valid for one year at a time in Iowa.  In order to have a longer contract, it must be in writing.  Leases that are more than five years in length are required by law to be recorded. The termination notice must set the date of termination as March 1. The lease year runs from March 1 to the last day of February of the following year.  
If you plan to change your lease terms or work with a new renter, now is a great time to consider adding conservation provisions to your farm lease. For more information on how to do this, contact Sara Berges at the Allamakee SWCD by calling 563-568-2246 ext. 3, stop by the office at 635 Ninth Street NW in Waukon, or email sara.berges@ia.nacdnet.net.