Complicated land rent question

A local farmers passed away unexpectedly and I have picked up a field he was farming a couple days ago. Problem is, he planted wheat in it last fall. His daughter is auctioning off all his equipment in April I was told. I do not know them, but do know where they live. The land owner hasn't heard anything out of them. How does a situation like this play out? I'd assume the daughter gets to make the decision on the wheat. She'd either have to hire it done or sell it out of the field. I'm thinking off typing up a letter and offering to buy the wheat and pay the rent this year. They may not even know it exists. Any better ideas? If I were to purchase the wheat, I'd like to do it soon so I can get some fertilizer on it. Also don't want to push a family that just lost their father. What are you guys thinking? I haven't paid anything yet, but have verbal agreement. The land owner said he knows a friend of theirs and will try to contact them through him. Kind of a sticky situation with money,emotion, and me not wanting an opportunity to slip away.

One of Dad's distant cousins contacted me one time about something similar. Somebody had planted some wheat on his dad's place,then pulled out. He offered me half if I'd cut it and haul it,so that's what I did.

I'm concerned about the legalities of it. I think the land lord wants me to pay this year's rent and treat it as mine. Worries me a little.

Call the daughter or stop in and talk in person. Will be more effective and probably quicker than the letter.
See what she has to say then go from there. She may not care about the wheat, and it might be the least of her worries...

"Call the daughter or stop in and talk in person. Will be more effective and probably quicker than the letter.
See what she has to say then go from there. She may not care about the wheat, and it might be the least of her worries..."

I think the above is good advice. Once you have an agreement with the daughter, tell her you will need something in writing for the owner of the land AND your business records. Then go to the landowner, present him with a copy, pay your rent and fertilize your wheat.

Things like this are only complicated if you make them complicated.

Guess I'm kind of afraid to bug them too soon if you know what I mean. Kind of need to for my and the landlord's interest, but feels weird.

I understand it will be a bit awkward but the advice to call her is excellent. A letter may lay around for over a month before anyone deals with it, but a phone call gets her thinking immediately. Don't know how many acres are involved but it might amount to a substantial sum difference for you both and you need to make sure she is aware and has a decision to make. As long as you are kind to her you will be fine.

Sorry - cannot edit my post to add this:

You may want to give her the option that rrlund mentioned, particularly if she knows zip about farming and doesn't know what to do.

If it needs fertilizer you could offer to split that cost with her and then split the crop with you cutting and hauling. If she doesn't want to fertilize you could let it turn out however and still split the crop. That way she has no cash outlay but still recoups something from her relative's investment of time and inputs. I know you would rather fertilize but this is a one-time odd situation.

The problem with an unfertilized crop is the
rent still needs to be paid, and rent is
very competitive around here. I don't really
expect the land owner to take a hit either.
I'll come up with a number some how and give
her a call i guess.

Legally you are not in standing yet. Another option would be for the landowner to contact the daughter first; if he has a contract that properly should be in the estate. Then go from there.

simple contact owner of land direct and the other contact person who was connected to rent farm. simple as that. go direct tp both parties is always best from what i learned over years doing that. you said you have it by verbal only thats always trouble. if its not in writing you do not have it yet!!!!

Just go and see the daughter ASAP. Waiting just makes it worse. IF she is scheduling a sale already then it would appear that they would not have the equipment to finish the harvest BUTTTTTT you do not know anything other than the rumor mill stuff. GO AND talk to her IN person!! You can gauge people's reactions in person much better than over the phone. She maybe upset or not you can tell much better in person.

Here is my personal experience with family dying. When my Grand Father died we had a clear plan for succession in place. Basically me taking over and paying my Grand Mother. Within DAYS the buzzards/friends??/local farmers had contacted ALL of the landlords we rented ground from. NOT ONE single one had the balls to contact us, the family, directly. They had fifty different stories told to the landlords. Every single one of them trying to get the land to rent. So before my Grand Father was COLD in the ground I had to go to EVERY single landlord and talk to them about what was going on. What made me mad then and I am still hot about, this was 5 days after he died, Two days after the funeral. He died on Dec, 19 and was buried on the 22nd. So I had to spend Christmas Eve placating landlords stirred up by RUMOR and gossip!!!!!! Thank GOD we live in Iowa with clear land rental laws and we had written contracts with every single landlord. The real funny part was these contracts clearly spelled out the transition if either of us died. Only one of 13 landlords even thought to look at the contract they had in hand.


Now for the value of the wheat crop. That is hard to put a value on. You need to know what the farmer has already done. If he fertilized it when he planted then the estate has the cost of the working the ground, seed, and fertilizer already invested in the crop. In most states the estate, at the minimum, is entitled to the value of that at the very least. In Iowa the crop is planted and is the estate's until the next Sept. 1st unless the ground is released in writing from the estate.

Here is how I would handle it. IF the crop was fertilized when planted then all that is needed to finish the crop is some spring nitrogen, maybe herbicide application ( depending on the location) and harvest). I would apply the spring nitrogen and herbicide. Then harvest the crop. Take the cost of the spring fertilize and herbicide, plus the seed and fall fertilizer, right off the gross grain sales price. Then pay the 2016 rent. Then split the remaining amount 50/50 between you and the dead farmer's estate. His planting the crop and your harvesting it are equal to me as far as work. So just reimburse each other for out of pocket expenses and split what is left.

I could look anyone in the face after doing it this way. Just taking the crop over without giving the dead farmer's family some thing is the same as stealing to me. I know many landlords and farmers that would think nothing of just walking in and taking over but I DO NOT feel that way.

My thoughts exactly. Want to do it right. Thanks for the advice.

We just went through an even weirder deal, but it works out.

Anyhow, the estate owns the wheat and the lease on the land, so you need to tread carefully on legal grounds.

I would approach the daighter but talk as if it is her wheat, and her lease to pay up and so forth.

Really the landlord should be doing that.

But it might go better if you do, and keep yourself in the loop.

You have much more of a legal deal going on, and less of an emotional one, if you really figure it through.

Paul

Pual has it right. Most landlords think that since they OWN the ground it is theirs to do with as they please. IF it is rented an the lease is in effect the farmer OWNS any growing crop and has legal control of said crop. The landlord does NOT have any control of a growing crop unless he is share cropping.

That being said it really makes a big difference as to the state the ground is in. Some have limited protection for the farmer while others ,like Iowa, have strong protections for the farmer.

Yup.

And, of everyone is civil and has their head on straight, this should work out fine. We assume the daughter wants out of farming if they are selling out the equipment, we assume the landlord want to rent it to you on the verbal deal, and just some pleasant conversation will get everyone together and you buy the standing wheat for a little bit, and take over the leasing of the land.

But, one should understand the realities and be respectful of who owns what at this point.

Paul

I want to add a few things yes I agree with JD seller and Paul and state law could govern it too. I think the idea of meeting with the daughter and land owner in person is best. This is my take you would be better off to see what the daughter wants and have her release or sign off from the crop and or transfer the lease to you. Work out terms with the land owner on say a 5 year lease. Now pay the daughter some amount, example: say they have invested $50 an acre x 100 = $5000. (you would have to invest that anyway) I doubt she has much interest in farming it and I don't like the partnership or share crop ideas. She is selling you her contract basically. I have seen several of these type deals; some went ok and some went sour. I will also add that if he just died give her your card, if she does not want to or can't talk to you at the time and set up a meeting. Also beware someone else could approach her and cut a deal with the land owner too!!! One key is the less people you have the better!!! Heck when your done offer to buy the land!!! Hope this helps and good luck

Sounds like it's not your problem. Landowner needs to complete whatever deal he had with the dead mans estate.

You need to advise him of how he growing wheat affects the current crop years planting/fertillizer situation.

But if it comes time to do something, and he can't get a deal worked out with dead mans kids, then get his permission in writing to burn down the wheat and plant/fertilize.

It is his land. He has a share in the crop ( I assume) unless cash rented.

I wouldn't get too much in the middle of someone elses problem, as long as you can keep it from affecting your future plans.

Gene

After thinking more, maybe talke the landowner with you. Figure out what the wheat is worth to the landowner on the day you meet.

He could pay her for the seed, and planting, and it's his wheat.

Then he could hire you to fertilize/ care for/ and harvest the crop, and after that is is yours to cash rent or share crop.

Or, he may determine the wheat is a liability, not worth anything, and needs to be destroyed so you can take over.
But if he is there, the two of them can work it out.

I think all parties need to meet, get it settled, on the spot, and pay off on the spot, and it's over with.

Give her some notice prior to the meeting so she can do some research.

Non farmer, grief stricken women can do some wierd and irrational things.

Gene

Gene pretty good idea as it is the dead mans estate and land owners issues. Some states when you die so does an agreement. The rest is similar to what I said buy her out and be done.

Not really much info here........... but given what there is I think you best go talk to the family of the old guy. How do you know they haven't made arrangements for the crop? If there was a legal rent agreement there, possibly in a limited company name.... there may indeed still be a legally enforceable contract. I don't generally have a lot of trust in a lot of land lords either.... Wouldn't be unheard of for some to try and double book the rent in that kind of situation.
I probably sound like a pessimist... and for that there is a reason.

Rod

I've talked to a close friend of the family that I know a little. Very reputable guy in the area. He's kind of been a middle man for years. Says he's talked with both sides and I have nothing to worry about. Says the land owner is a stand up Guy and the owner said he really wants me to work the land. The daughter of the deceased farmer is only interested in recouping the money for seed and the 2016 rent that's already been prepaid, and it has. The owner confirmed this. He says they'll contact me in a week or two when things settle down. Also said at least two other people in the area have contacted him in the area trying to go through him to rent the ground knowing he's tight with the land owner. He turned them away. Looking good. Thanks for the help and advice.