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Case Tractors Discussion Forum
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OT- Land lease question

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Shane

04-15-2004 19:45:38




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I know this is off topic but someone here may know the answer. We had a landlord sell her land about a month ago. We just signed a 5 year lease last year for crop years 2003-2007. Now the new owner doesn't want us to farm it but we already have some inputs into this years crop (fertilizer, lime, what not). So the question is; Do we have the right to farm it this year even if the new owner doesn't want us to and what about the remaining years on the contract? This is a tricky one I know but with prices as high as they are for both fertilizer and for the crops I would like to farm it for at least this year. Thanks for any advice.

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Clint

04-22-2004 20:00:15




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 Re: OT- Land lease question in reply to Shane, 04-15-2004 19:45:38  
In Kansas you would have the legal right to farm the land the full term of the written lease. The new owner could purchase you lease rights, if a price can be agreed upon. As a ag banker, I have seen this happen many times. The buyout should be higher priced with the current grain prices, compared to 2003.



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paul

04-16-2004 06:04:57




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 Re: OT- Land lease question in reply to Shane, 04-15-2004 19:45:38  
Don't normally come here, but your message made the highlights page of Ytmag home page. :)

You have some rights in this. Certainly worth persuing. I would.

Beyond that, would need to know the state you live in for the exact rights. In many cases you would have the right to farm 1 more year if you had a contract after Sept of the previous year - this is a legal contract & was sold along with the property. It was for the buyer to be aware of it, title searches & such - if they didn't bother, still their fault.

As to the remaining 4 years of your contract, or if push comes to shove who you need to push for damages (seller or buyer) that will probably need real legal experts to get any meaningful opinion.

For some ideas from farmers who run into this more, you could try posting on http://talk.newagtalk.com

Ultimately, internet help is only some opinions & 'I heard this' stuff. You'll need a real lawyer on this, I'm sure you know that & are just looking for opinion.

Good luck with it, you are getting the short end and need to go get what is yours on this. They are cheating you, and law has been on your side in the past. It's up to you to collect on it.

--->Paul

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Shane

04-16-2004 06:14:09




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 Re: Re: OT- Land lease question in reply to paul, 04-16-2004 06:04:57  
Thanks for the post. I had been told that leases follow regardless of sale of land and just found a quote from Purdue that proves it, at least in Indiana. And we specifically told the original landlord to inform anyone who bought the land a lease was in effect and would remain in effect regardless of sale of land. Normally wouldn't bother with the headache but fertilizer is too high to just give it away and crop prices are too high to not at least try to farm for as long as I am entitled to do so. Thanks again, I guess for once what I have heard it true.. HA HA!!

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Shane

04-16-2004 05:39:55




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 Re: OT- Land lease question in reply to Shane, 04-15-2004 19:45:38  
Thanks for the thoughts! I did some searching and found this site that supports the idea that we definately do have the right to farm this year unless the new owner pays for inputs already implemented. I am gonna get ahold of a guy at Purdue who specializes in land lease laws.

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Shane

04-16-2004 06:08:45




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 Re: Re: OT- Land lease question in reply to Shane, 04-16-2004 05:39:55  
Look what I found on the Purdue site, proof that in Indiana and probably other states that a lease if binding even if a new owner takes control of the land.

"Disputes that come up every year in Indiana and, I'm sure, across the country, are that new farmland owners think they bought a farm free of the lease -- or the farm goes into an estate and maybe the heirs don't want the current tenant. The fact of the matter is a lease is good against a decedent's estate or a new owner, if indeed a tenant has a valid lease. Many times, particularly in oral leases, a tenant has a right to a notice to terminate, and December or January of a current crop year is probably too late for a timely notice to quit."

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Josh

04-16-2004 05:24:21




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 Re: OT- Land lease question in reply to Shane, 04-15-2004 19:45:38  
You are going to need a lawyer, but you have the right. A similar situation happened year last year. A big farmer up the road had a signed lease agreement and then the property was sold. He sued, and we all thought he was crazy. But he won. If you dont need the ground it might be easier to talk to the new landowner and tell them you need to be reimpursed for any lime, seed, fertilizer, tillage or anything that went into it for this year. If you planted the ground in hay recently, you should probably get more because the first year of hay usually doesn't pay for all the costs.
Josh

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Campbell

04-15-2004 22:26:00




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 Re: OT- Land lease question in reply to Shane, 04-15-2004 19:45:38  
Boy, I'll secomd that opinion. Talk to a good, qualifed attorney that works with Ag leases- and no I'm not one.
However as far real estate goes, if you buy a property subject to a lease in place then you can't just cancel the lease because you're the new owner. However I have seen people buy out, or otherwise incentivize someone to give up their lease. If he wants the ground right now, maybe you could negotiate his buying your supplies or somehow offsetting your up front costs? Maybe you can partner with him and run the operations side? Whatever you do, Good luck- and do call an expert.

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John L.

04-15-2004 19:59:44




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 Re: OT- Land lease question in reply to Shane, 04-15-2004 19:45:38  
Definitely not the place. You absolutely need to get yourself a lawyer as you probably stand to lose a significant amount of money. Of course perhaps the threat of a lawyer will get the owner to come to their senses and honor their agreement.



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