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Verbal leases legal but not best way of doing business
Missouri
Verbal agreements may be a legal method of leasing farmland in Missouri, but it's not a good way of doing business, says Dave Whitson, a University of Missouri Outreach and Extension agricultural business specialist headquartered in Neosho.
"A written lease allows the landowner to include all management practices. You could say a verbal lease can do that too, but it lends little proof should a dispute develop," Whitson said.
With lease termination, Whitson says a month-to-month lease requires only a one-month written notice, whereas a year-to-year lease requires 60 days notice. The notice to terminate a lease must be written, even though the original agreement may have been verbal.
"There's some uncertainty about written notification. If the two parties agree upon a date of termination, then the law doesn't require a written notice," Whitson said. "But since there's always a chance of dispute, I always recommend a written notice hand delivered in person with a witness, or delivered by registered or certified mail with a return receipt requested."
Whitson says a verbal lease is binding on heirs at the death of either the landowner or the tenant. But the surviving party and a representative of the deceased can terminate the lease by mutual agreement if they so chose.
When it comes to pasture leases, Whitson says a large number of landowners with farmland to offer have little knowledge of what it takes to maintain good pasture, and often they may not have the capital to invest in fence and pasture improvement.
"This makes it difficult to make any long-range plans for improvement if tenants don't have any idea if they will have the property from year to year," he said. "For this reason, I believe it's important for landowners to consider long-term leases of three to five years. This would give tenants time to regain some investment from fencing work, fertilization, weed control and other pasture-management practices."
For further information, contact University Outreach and Extension center nearest you or call Whitson in the Neosho, Mo., office at (417) 455-9500.
University Outreach and Extension improves people's lives with education and research from the four campuses of the University of Missouri System and Lincoln University that focuses on high-priority needs of people throughout the state. Each county extension center, with oversight by locally elected and appointed citizens, is your local link to these unbiased resources.
Date: 2/6/04
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