Understanding agricultural lease laws

A majority of crop farmers have multiple land renting or crop share agreements. Although there are fewer and fewer agricultural producers, not always is the land sold by the retiring producer or family. However, farmers and ranchers are needing to increase the size of their operations to stay financially stable. The trend towards more leased land is likely to increase. Nearly 50 percent of ag land is rented or crop shared in Kansas and it could be higher than that in southeast Kansas.

There are two types of contracts, oral and written. While written contracts spell out the terms, oral contracts have many terms that automatic according to Kansas state law. Many issues can arise because landlords or tenants often don’t know what can be done or not done to the land while under contract. In general, a tenant becomes the owner and has the responsibility of an owner while the land is being leased. The legal safety of a piece of land falls on the tenant after the landlord’s due diligence. A landlord can’t come and hunt or cut firewood on a piece of rented ground without the consent of the tenant. However, when it comes to noxious weeds, both the landlord and tenant have a responsibility for their control.

Ag contracts run from March 1 to March 1 but need to be agreed upon by 30 days before. Written contracts can have terms that last over a 2 or more years but oral contracts are always on a year by year basis. Written contracts don’t have to use the March 1 calendar but the dates of contract need to be spelled out. The termination of contracts uses the 30 days before March 1 deadline as well, but these must be in writing, even if the contract is oral. A termination letter can be handed directly to a tenant but it is best done through registered mail so that there is a record of it being received.

A wheat crop changes the rules a little bit. If wheat has been planted before a termination letter has been received, then the contract ends a day after wheat is harvested, but March 1 is the written termination date. There are a number of these exceptions to the rules that exist with lease laws and sometimes it takes an expert in agricultural lease laws to decipher how a certain scenario fits into the law and contract.