Need a New Tenant? The Ins & Outs of Farmland Lease Termination

In a perfect world, you would find a tenant to farm your land, sign the agreement, and work together until the end of time. 

But we don’t live in a perfect world.

There are many reasons why you’d want to terminate a farmland lease. Poor performance, personal tensions, differing visions about the use of the land—all of these can lead to a parting of ways. 

However, terminating a farmland lease is easier said than done. Not only does it require multiple diplomatic conversations, but there are also timing and legal considerations at play. The process for terminating a lease differs from state to state, adding another layer of complication to the situation.

This article will walk through some of the major considerations of terminating a lease agreement, leaving you with a clearer idea of how to go forward. 

Why should you be thinking about lease termination now?

For some states, the deadline for terminating next year’s leases has already passed. This fact alone should reiterate the fact that it’s never too early to think about lease termination.

Most states have established termination dates and guidelines. If you don’t address your lease by these deadlines, it will auto-renew (in most states), and you lose the chance to make changes. This is why being proactive and thinking ahead—even as early as planting dates—can keep you from being trapped in an agreement that doesn’t serve you. 

Even if you’re happy with your current tenant, it’s a good idea to brush up on your state’s requirements, just in case something goes wrong. It’s better to have that knowledge and not need it than the other way around! 

Best practices for farmland lease termination

Unless you want to end up with an unnecessarily angry tenant, it’s best to provide as much notice of termination as possible. While they may be a little salty about it, at least you’re providing enough time for them to make other plans. 

While requirements vary by state, some common best practices include:

• Make sure the agreement (and the termination date) is in writing. Some states offer little support for verbal agreements.

• Send lease termination notices via certified mail to confirm receipt. If certified mail isn’t possible, then always get a signature that the farmer received the request.

• If your deadline is in the middle of the harvest or other busy season, be sure to send the letter early to allow adequate time for the farmer to review

• Specify the manner in which the tenant should vacate the property, the condition they must leave it in, and the time allowed for them to vacate 

A state-by-state guide to farmland lease termination requirements

While most farmland leases run from March 1 to the last day of February, each state has different requirements for terminating a lease. Different lease periods, notice requirements, and termination practices make creating a single set of instructions very difficult.

Here’s a brief compilation of the lease termination requirements across the major agricultural states. Note that if you want to move forward with terminating your lease, you should consult professional legal counsel before taking any action. 

Arkansas

Lease termination notices are due on June 30, and must be given in writing via certified mail to the tenant. If the tenant does not receive notice by this date, they assume the lease will continue through the following year. 

California

California has no specified date for lease termination notices by law, but each agreement must set out its own deadlines. Unlike other states, California does not offer broad support for verbal agreements, so setting these terms in writing is critical. 

Indiana

Indiana requires lease termination notice three months before the end of the lease, typically on November 30 for standard agreements. 

Illinois

Illinois requires lease termination notice four months before the end of the lease, making October 31 the most common termination date. 

Iowa

Iowa requires lease termination notices by September 1, and they must be in writing. This is the only state where state law supersedes any requirements and deadlines set forth in the lease agreement. 

Kansas

Kansas requires all termination notices to be in writing, and submitted to the tenant no later than 30 days before March 1. 

Kentucky

Kentucky requires lease termination six months prior to expiration of the lease. These notifications must be sent in writing via certified mail. 

Louisiana

Louisiana’s lease termination notice deadline is 30 days before the end of the lease, in writing via certified mail. 

Michigan

Like California, Michigan allows landowners and tenants to set custom lease renewal terms. If you don’t choose to include the termination date in the lease, you must submit a written notice of termination to the tenant. 

Minnesota

Minnesota has two options for lease termination notice deadlines: three months before the end of the lease, or including a definitive termination date in the document. If you choose not to include the termination date in the lease, then you must provide written notice to the tenant. 

Mississippi

Mississippi requires termination notice in writing, two months before the end of the year or lease term. 

Missouri

In Missouri, you can either set the lease termination notice deadline in writing, or default to 60 days before the end of the lease. In the latter case, you must provide written notice to the tenant. 

Nebraska

Nebraska has no automatic renewal for written leases; if there’s no notice of renewal, the lease automatically terminates on the last day. Verbal (handshake) leases require notice six months in advance, or not later than the preceding September 1. 

New York

New York requires 90 days notice in writing. Certified mail is recommended. 

North Carolina

North Carolina requires written notice 30 days before the end of the lease, either sent via certified mail or a hand-delivered termination agreement signed by all parties. 

North Dakota

North Dakota requires a minimum of 30 days’ notice prior to the end of the lease term. 

Ohio

Ohio requires written notice of lease termination at a time specified in the agreement itself. 

Pennsylvania

Pennsylvania requires only 15 days notice in writing prior to the end of the lease. 

South Dakota

South Dakota requires all lease termination notices to be sent by September 1, in writing through certified mail or a hand-delivered termination agreement signed by all parties.

Tennessee

Tennessee requires written notice of termination by July 1. 

Texas

Texas has a wide range of lease types and land designations. For guidance on how to terminate a lease agreement in the state, please contact a local attorney. 

Wisconsin

Wisconsin requires written notice 90 days before the end of the lease.

Final thoughts on lease termination protocol

Staying on top of termination deadlines is a core part of working with a farmland tenant. This will help you have critical conversations at the right time, allowing you to negotiate and come to a mutually beneficial agreement. 

And in those cases where you do have to part ways with a farmer, being proactive can help you avoid leaving them in a bind and causing more problems down the road. 

If you’re going to terminate or just terminated a farmland lease, you’re going to need someone to farm or operate that land. See how CommonGround can connect you with a new tenant so you can keep your assets profitable.