Ben Gardiner is a broker in Nebraska, Colorado & Kansas with experience as a licensed appraiser for over 15 years and has extensive knowledge in ag real estate, spending 11+ years with the Farm Credit system.
Understanding the legalities of farm lease terminations is crucial for both landowners and tenants. With many leases operating on a year-to-year basis, particularly verbal agreements, adhering to state-specific deadlines protects the interests of all parties involved.
For verbal or “handshake” year-to-year farm leases both Nebraska and Colorado generally recognize that the lease year begins March 1 and runs to the end of February the following year. However, the states differ in the amount of notice required.
NEBRASKA – six months’ notice is required – therefore, September 1st is a critical date to remember. For example, to legally terminate a lease that would renew March 1, 2026, a written notice must be received by the tenant no later than September 1, 2025. Failure to provide timely notice results in the automatic renewal of the lease for another year, thus extending it through February 28, 2027.
COLORADO – the required amount of notice for a verbal lease is tied to the length of time the lease was in effect. For a lease that has been in effect for at least one year (as most farm leases are), the required amount of notice is a minimum of 91 days prior to expiration, making December 1st the deadline to remember.
Keep in mind that winter wheat is a common crop grown in our region – as such, some land could be in the process of being prepped for winter wheat during the summer months, so even if a landlord decides to terminate a lease and provides appropriate notice in accordance with the deadlines above, a tenant may still be entitled to reimbursement of some expenses in prepping the land, or may have the right to plant winter wheat and take it to harvest the following year.
Regardless of the state, it’s advisable to deliver written termination notices via Certified Mail™ to obtain proof of receipt, which can be vital if disputes arise.
For written leases, the termination process is governed by the specific terms outlined in the agreement. If the lease specifies a termination date or notice period, those terms must be followed. In the absence of such provisions, the lease typically concludes on its stated end date without the need for additional notice (meaning it does not automatically renew). It’s essential to review written leases carefully and consult legal counsel if uncertainties exist regarding termination clauses (or anything else).
Pasture leases often differ from cropland agreements. Typically, pasture leases cover the grazing season and conclude at its end without requiring formal termination notice. However, it is always best to adhere to the verbal lease deadlines, at minimum, or consult legal counsel to properly terminate the lease.
Document Everything: Even for verbal agreements, maintain written records of lease terms and any communications regarding termination. If you do have a verbal agreement, consider getting it in writing – it could avoid a costly dispute in the future and protect relationships.
Consult Professionals: Engage legal counsel to navigate complex lease agreements and ensure compliance with state laws.
Communicate Early: Initiate discussions about lease renewals or terminations well before the deadline to allow ample time for planning.
Use Certified Mail™: When delivering termination notices, use Certified Mail™ to obtain proof of delivery and receipt.
It is always possible to sell land that is currently under an existing lease. The terms of the lease are simply passed along to the new owner who then becomes the landlord with the same terms as before – this applies to both written and verbal leases. If selling your land is on the horizon, be cautious of entering into longer term leases and avoid giving the tenant a “Right of First Refusal” as these provisions often hinder the marketability of your property to the open market.
These articles are for informational purposes only and are not intended as professional advice; always consult your qualified advisors before making business decisions.
