Farm Lease Termination Deadline
The Farm Lease Termination Deadline is fast approaching for the 2017 crop year. Landlords and tenants have until September 1, 2016, to notify the other party if changes need to be made to the farm's lease for the 2017 crop year.
The best option is to send a termination letter to the other party via certified mail no later than September 1, 2016. This notification terminates the current year's lease and opens the door for negotiating the next crop year's lease. Sending the letter via certified mail also provides the sender with documentation that the letter was indeed sent.
A change in Iowa's Lease law took effect on July 1st of this year. It is now required that all lease terminations must be in writing. The termination notice must also be delivered on or before September 1st to terminate a lease for the following crop year.
To help better understand your leasing options, Iowa State Extension has developed several tools for your use. First is a pamphlet that explains leasing and the lease termination process. You can download a copy of that pamphlet here. Second, ISU Extension offers a "Notice of Lease Termination" form that can be downloaded for your use.
If you are unsure of what actions to take, it is always advisable to speak with an Ag Law Attorney who is up-to-date on the latest leasing laws in our state.
Lease negotiations can be difficult. An open line of communication between the landlord and tenant throughout the year makes negotiations easier to complete for both sides.
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Terry Pauling is a Broker & REALTOR® at EXIT Realty North Star, 222 W Salem Ave. Indianola, IA 50125. We provide full-service real estate services to the Indianola, Warren County and Des Moines, Iowa metro areas. Find Links and contact information for Terry at www.exititown.com.