Some farm leases are not written but are verbal or "handshake" agreements. Because nothing is in writing, the parties may have different recollections of their agreement, making lease disputes more difficult to resolve.
The most common legal issue associated with verbal farm leases is how a lease may legally be terminated. For both year-to-year leases and holdover leases, six months advance notice must be given to legally terminate the lease. However, the lease date (the date from which the six months is counted) is different. In contrast, the termination of a written lease is determined by the terms of the written lease.
Terminating verbal leases
For year-to-year verbal leases, the Nebraska Supreme Court has ruled that the lease year begins March 1. Notice to a tenant to vacate under a verbal or handshake year-to-year lease (legally referred to as a "notice to quit") must be given six months in advance of the end of the lease, or no later than Sept. 1. This rule applies regardless of the crop planted. Those with winter wheat should consider providing notice before it is time to prepare wheat ground for planting.
Read More