Oral Farm Leases Renew on September 1

By Scout Nelson

September 1, 2026, is an important date for agricultural landowners and renters in South Dakota. Oral agricultural land lease agreements automatically renew on this date when proper written notice is not provided. Landowners and tenants who want to change or end an existing agreement act before the deadline.

Hoanh Le, Assistant Professor & SDSU Extension Economics Research Specialist, and Heather Gessner emphasize the importance of reviewing agricultural leases before September 1, 2026.

Calls about farm and pasture leases often increase during July and August as landowners and renters consider possible changes.

South Dakota law requires written notice to all parties involved when an oral agricultural lease is not being continued under its existing terms. If the required notice is not provided, the lease renews with the same terms and conditions.

Landowners and renters may want to discuss several parts of an agreement. Changes can include ending the lease, creating a written agreement, changing the rental rate, adjusting the number of acres, changing payment dates, or updating maintenance duties.

SDSU Extension encourages both parties to use written lease agreements whenever possible. Written agreements can reduce confusion and help landowners and renters clearly understand their responsibilities. They can also provide greater security when unexpected situations affect the farming operation.

A written lease is required when the lease lasts longer than one year. South Dakota law also limits agricultural leases to a maximum term of 20 years.

Farmers and landowners can find information about different lease types through Ag Lease 101. Resources cover cash leases, crop-share agreements and flexible leases for cropland and pasture. Lease templates are also available and can be adjusted for individual needs.

For those planning changes to an oral lease, sending a certified letter can provide formal notice and proof that the other party received it. Parties with complex lease arrangements may also consider getting legal advice when preparing cropland or pastureland agreements.

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