How To Terminate A Farm Lease Tenant and Tenancy in Iowa

We’ve added a countdown clock this year to help you!  This date is set by law and is absolute.  It doesn’t mean that the landowner and tenant can agree to break farm tenancy after that date but a landowner can not legally remove the tenant if its against their wishes.  If you are serving a notice to a client in 2023 this date is extremely important!  Its never too early so get started on it today and ensure you do not miss the deadline.

NOTICE: It is important that you understand we are not offering you legal advice.  In the context of our duties as real estate brokers we are offering you a generalized view of the farm tenancy termination process.  In our experience 98% of farm leases are straight forward and can be extinguished with this process.  That doesn’t mean there isn’t some circumstance in your case that makes it different.  Always seek legal advice to have legal questions answered.

Understanding Farm Tenancy in Iowa and Lease Termination Letter

Often referred to as Farm Tenancy in Iowa it is really a reference to an agreement between two people and their rights in a certain parcel of land.  Most of our material and answers will talk about how a landowner can terminate a tenant but the same process is true for a tenant that doesn’t want to farm a property in the following year. They must notify the landowner they intend to break the tenancy relationship with as well.  It’s an organized system of ensuring stakeholders have made willing decisions by imposing deadlines and rules for tenancy agreements.

Iowa Farmland Leases Automatically Renew

It is important to understand that verbal leases in Iowa automatically renew for another year if you do not notify the other party in writing that you are breaking the tenancy.  The actual tenancy lasts from March 1 to the last day of February the following year.  Tenancy notifications must be served prior to September 1st to break any tenancy.  For example, if you do not want a tenant on your farm during the 2024 crop season, you must notify them BEFORE September 1, 2023.  If you do not notify them before September 1, 2023, they have a legal right to tenancy on the farm from March 1, 2024 to February 29, 2025.

Farm Leases Verbal or Written

Farm leases are not required to be in writing in order to be enforceable.  A farm lease is a legally binding contract whether its written or not.  Written leases are always the best business practices and ensures all terms are easy to evidence.

Steps to Terminating Common Farm Tenancy in Iowa

1. Complete the Tenancy Termination Form properly.  It is important you include the best legal description so the farm can be identified.

2. Arrange for delivery or service to the tenant before September 1st.  Certified Mail is the best option.  Emails, text messages and phone calls will not satisfy the legal requirement.

3. Document your process and service of the form to the tenant.  With certified mail you will get a mailing receipt and once mailed service is considered perfected even if its not picked up.

4. File your documents for safe keeping and future needs.

Considerations of Termination of a Farm Tenant

The vast majority of farm tenancy terminations are uneventful and by the book.  We offer terminations as a part of our service of selling farms in Iowa so we have served many of them.  The September 1st deadline to serve the form is very important from a legal standpoint but if it is not served by September 1 that does not prohibit you from selling your farm.  It also does not mean that you can’t make an agreement with the tenant after September 1st to voluntarily give up tenancy on the farm.  Sometimes this is done just on a handshake and sometimes the tenant requires payment for any Fall tillage or fertilizer they may have already applied for the following year.  The best situation is to serve it before September 1 and if you didn’t to contact us and see what the best options are.

There are more questions relating to farm tenancy where the form was not served before September 1st so I’ll spend a little time answering those questions.