Farm Tenancy Termination
Farm Tenants -- have you made a decision that the amount you pay to rent land owned by someone else is too high? It may or may not be a positive part of your farming operation today, yet something (or someone) has convinced you that renting a tract of land for the same amount in 2017, just may jeopardize your entire operation.
In most cases, we think of Landlords sending notice to the tenant indicating that the current lease will no longer apply for the next crop year. With today's economic conditions, it may be more important that you (the tenant) send the landlord a Farm Tenancy Termination to indicate that the current lease will no longer apply for next year.
In either case, by terminating the current lease you open the door for negotiations and a chance to create a lease that is better suited for today's costs of production. Yes, you risk losing the farm to someone willing to pay higher rent, but that might be what it takes to keep your farming operation in the black. Only you and your banker can make that decision.
Iowa law requires that the Farm Tenancy Termination letter be delivered on or before September 1st for the next crop year. If you do not terminate your current lease the landowner can still hold you responsible for rent next year.
Click here for more information and links to additional resources.
To download my mobile business card Text: EXITitown To: 85377
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.