By Scout Nelson
Agricultural land lease agreements in South Dakota automatically renew on September 1, 2025, unless written changes are made. South Dakota State University (SDSU) Extension experts are encouraging producers and landowners to move from oral leases to written agreements before that date.
According to state law, any changes to an existing lease must be given in writing to all parties involved by September 1. If this does not happen, the lease automatically continues under the same terms and conditions. This renewal period offers a good opportunity to create a written lease.
South Dakota law requires that written leases be used for agreements longer than one year. The maximum length for any agricultural lease in the state is 20 years.
Gessner noted that the number of calls from landowners and tenants rises in July and August as many seek to make changes to their leases, including oral agreements. Changes to consider include moving to a written lease, adjusting the rental rate per acre or per animal unit month (AUM), changing acreage amounts, updating payment due dates, or modifying maintenance responsibilities.
She recommends that when making changes to oral leases, landowners and tenants send a certified letter to provide formal notice. This verifies that both parties are aware of upcoming changes and ensures clear communication.
For those interested in learning more, resources at AgLease101.org provide detailed information on cash leases, share agreements, and flexible leases for cropland and pasture acres. The site also offers templates to help customize written leases for South Dakota operations.
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Categories: South Dakota, Business, General