There are a couple of leasing options for producers and landowners. Verbal leases are a common form of lease agreement. However, if someone is considering terminating a verbal lease, there are some dates and rules to remember for those with crops versus pasture verbal lease agreements.
The Nebraska Supreme Court has ruled that the lease year begins March 1 for year-to-year verbal leases. Notice to a tenant to vacate under a verbal or handshake year-to-year lease must be given six months before the end of the lease or no later than Sept. 1 for crop production. It is recommended that Registered Mail terminate the farmland lease. This means the person receiving the letter signs for it, providing evidence that the termination notice was received.
Handshake or verbal leases are different for pastures. The typical pasture lease is for the five to six month grazing season. The lease is only in effect for that time, so the lease is terminated at the end of the grazing season. However, different lease length arrangements can be made in a written lease.
In all instances, written leases would be preferred over oral or “handshake” leases. Sample leases are available in the Ag Lease 101 Document Library (glease101.org/doclib) and can help both parties start thinking about the appropriate lease conditions for their situation.— Shannon Sand, Nebraska Extension
