I have a farmer question....

Txturbo · Mar 12, 2015

I'm no farmer.....but I'm buying 10 acres that is surface leased to a local farmer. His lease is up March 1st of 2016 and he is not going to renew it at this point. I'm not able to ask him directly until after closing, but I wanted to know what usually happens when you are done with a surface lease. Do you go back after harvest and knock down the rows and level it out or what? I'm trying to figure out if I'm going to have to do this myself or not. If I have to do it, what would I need to do it?

Dick L · Mar 12, 2015

When the lease is up it will be yours to deal with. Lease it to someone else or have at it.

IaGary · Mar 12, 2015

Most times the new tenant takes care of the residue left in the field. You do not have to do anything.

Gary

Txturbo · Mar 12, 2015

as of right now there are no plans for a next tenant. I'm hoping to put up RV storage buildings on the 9 acres that is currently being farmed.

IaGary · Mar 12, 2015

Unless it is stated otherwise in the lease the tenant is done when the crop is harvested. He is not required to level the land. That is up to the owner or future tenant.

Gary

Dick2 · Mar 12, 2015

Depends on how the lease was written and if it is enforceable with a new land owner. Because of the short season in ND, most leases were written to require the leaseholder to "till" the land at the end of the lease.

If that language is not in the current lease, then it will fall to the new landowner. Unless you in a position to acquire the necessary equipment, it will be more cost effective to hire one of the neighbors to do whatever is necessary to the land, at least for the first time.

Txturbo · Mar 12, 2015

its just a handwritten basic lease that doesn't say anything about it. The two guys are friends. So I guess I'll have to hire someone to knock it down after he's done.

Icuby · Mar 12, 2015

By all rights he has untill March 1,2016 to that portion of land. If he is not planning on a new lease for the comming yr.then he should send you a lease termination by Sept.1,2015. If you decide not to lease to him the yr.of 2016 you should send him a termination of lease by Sept.1,2015. My 2 centds here in Iowa

Rich Iowa · Mar 12, 2015

I wouldn't expect the outgoing tenant to do any land work after his last crop is harvested, no point in burning up fuel prepping the ground for someone else unless it is agreed to in a contract. Think I read you plan on putting up storage buildings. If you are going that route, I'd suggest you hire someone to smooth the land and plant a cover crop to keep soil from moving around until you start building. If it takes a few years to get around to building, you can hire someone to mow down the grass if you don't have the equipment to do so yourself.

massey 333 · Mar 12, 2015

You could be looking at a BIG TAX bill in the future if that land was taxed as farm ground and you make it commercial ground.(NON AG)Like the last 5-8 yrs.worth.

Dave H (MI) · Mar 12, 2015

Generally around here you have to go to court to get your final rent payment before you worry about how he leaves the land. You would be surprised to find out what scum some of these mid size farmers are. Not coming back next year...not going to pay for last year. I am getting ready to sue my tenant from last year. Fortunately he only has a $4000 balance...so small claims and I have a written contract.

On the land that I rent from other people my policy is to leave it clean. My hayfields look like golf courses in the fall. Owners could take a good ZTR and mow them come Spring and just have a big lawn. I remove fallen trees, pick up trash, repair damage and lots more. I do that on the land I rent from other people AND I do that on land I rent TO other people. 2015 and I have no more tenants and good riddance.

Txturbo · Mar 12, 2015

(quoted from post at 06:28:29 03/12/15) You could be looking at a BIG TAX bill in the future if that land was taxed as farm ground and you make it commercial ground.(NON AG)Like the last 5-8 yrs.worth.

es....there will be 3 years of rollback taxes.

paul · Mar 12, 2015

As a farmer, that is a little sad. Another 9 acres of dirt that
produced food gone, so city folk can store more garbage
above ground.....

Not a reflection on you, I have no problem on what you do, just
on society in general.

Good advice so far, if there is nothing in the contract the
farmer can harvest his crop and leave the field as is.

Paul

Txturbo · Mar 12, 2015

i know what you mean. But most of the other farm land in this area has already been bought up by big investment companies and it's being turned into new homes. It's hard to find land around here that's less than 100 acres and only $10k per acre. This will have to produce income in my retirement and I doubt 9 acres is going to do that as farm land.

Txturbo · Mar 12, 2015

So I guess I will just plan to hire someone to level it and plant it with something. Any suggestions on a type of grass to plant on it that will grow and cover quickly in this climate?

Ohio88 · Mar 12, 2015

Around here when the property sells the lease terminates, unless other provisions have been made in the lease and sale.

randy hall · Mar 12, 2015

Why wouldn't you ask the farmer if he
would work it and seed it for a fair
price?

Txturbo · Mar 12, 2015

(quoted from post at 14:30:56 03/12/15) Why wouldn't you ask the farmer if he
would work it and seed it for a fair
price?

f I knew who it was, I would. But until closing, it's top secret. I asked the seller if the farmer planned to keep leasing and he said no. I was hoping he woul go a few more seasons.

Txturbo · Mar 12, 2015

(quoted from post at 14:30:56 03/12/15) Why wouldn't you ask the farmer if he
would work it and seed it for a fair
price?

f I knew who it was, I would. But until closing, it's top secret. I asked the seller if the farmer planned to keep leasing and he said no. I was hoping he woul go a few more seasons.

jm. · Mar 12, 2015

Not the common thing in these parts if I lease your field for a corn crop this year when I get the corn picked and walk away it is yours. Nobody goes back and does anything with crop residue , corn or bean if they are not going to lease it for then next year. Guess it is different for different parts of the country.

JMS/.MN · Mar 12, 2015

Around here we generally leave it like we found it...if it was plowed when I rented it, I plow it back, or pay for it to be plowed back.

ss55 · Mar 13, 2015

The realtor/sales agent should be able to get you a copy of the lease with the names blacked out. The agent should also be able to tell you what is normal for your area and what to expect.

Every lease can be different. Many leases have a provision that if the lease is terminated early, the tenant must be repaid for for tillage and fertilizer applied for the next year's crop. With a years advance notice, I would not expect the current tenant to do anything beyond harvesting his crops.

Worst case could be a very wet harvest leaving deeply rutted and compacted fields with much of the nitrogen leached out.

Every purchase agreement can also be different. You can try to write in provisions that you will be compensated if fields are left in poor condition. In a hot market the seller probably won't agree. You may be best off with an inspection clause, where you can back out of the agreement if needed. The buyer writes the purchase offer, work with your lawyer on this.

Keep in mind that realtor and sales agents are generally most interested in closing a deal as smoothly as possible to collect their commissions. They are not there to look out for you best interest nor the best interest of the seller.

flying belgian · Mar 13, 2015

Look at the bright side. You now have a reason to
tell her why you are buying a tractor.

Txturbo · Mar 13, 2015

(quoted from post at 16:00:08 03/13/15) Look at the bright side. You now have a reason to
tell her why you are buying a tractor.

he already knew I was buying one. I have to get about 80 yards of film spread out where my new building is going and after the farmer is done I'll have to have a way to keep the grass cut. Problem is.....now she wants her own tractor.

I have a farmer question....

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