crop ground leases

ghunziker

Member
Has anyone experienced having too write a letter or received a letter notifying the end of a crop lease? I know this can be difficult for both parties. Any ideas how the best way to handle this? Thanks for any help.
 
It varies state by state . In Ind the notice to terminate a lease has to be dated before Sept 15 for the 2023 crop year, otherwise the land lease could and probably would auto renew itself. Maybe a letter by certified mail would be something to consider if terminating. An in person visit would be best probably followed up by a letter. States all have different calendar deadlines for this to happen.
 
As long as the termination is in accordance with the terms of the lease, it shouldn't be any big deal. Read the lease carefully to be sure you're following it, and I would check to see if there are laws in your state that restrict when and how you can end a lease. (A quick google search will usually suffice.) Write a letter stating that you intend to end the lease on such-and-such date (which is presumably the end date of the current lease.) I suggest mailing it via Priority Mail, as this will give you tracking information that will prove it was delivered. (If you send it certified mail, return receipt, it will cost more and your tenant will have the option of refusing to accept it.)

So much for the letter. There are many other things to consider. For example, if the tenant has already invested money in the property for next year's crop (e.g. fertilizer, herbicide or tilling), he will expect to be compensated for that. You'll have to work out what that's worth with the tenant and either pay it yourself, or make a condition of the next tenant's lease, or perhaps a term of the sale if you're selling the property. Your tenant will almost certainly call you once he's received the termination letter. Try to keep things cordial. And if he doesn't call you, call him to make sure there are no misunderstandings.
 

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