Nebraska Farm Leases: Common Misconceptions About Terminations
by Adam D. Pavelka, J.D. – Real Estate Broker & Farm Manager
July 29, 2025
September 1 is an important date when it comes to farm tenancies in Nebraska. Many misconceptions exist regarding this law:
Misconception #1 – A Nebraska statute requires that leases be terminated before September 1.
I have overheard many people say that it is a Nebraska statute that requires lease termination notices to be received by farm tenants prior to this date; however, it is actually a series of Nebraska common law cases dating back to the 1930s which provide the framework for properly terminating leases under Nebraska law:
• Holtman v. Lallman, 122 Neb. 183, 239 N.W. 820 (1931).
Generally, a yearly lease of farmland begins on March 1 and ends on February 28 of the succeeding year.
• Barnes v. Davitt, 71 N.W.2d 107, 160 Neb. 595 (1955).
Tenancy from year-to-year can only be terminated by an agreement of the parties, expressed or implied, or by notice given six calendar months ending with period of year at which tenancy commenced.
These cases, along with others, helped create the law in Nebraska, which requires that verbal, handshake, or carry-over farm leases need to be terminated prior to September 1. If these agreements are not properly terminated, the lease can automatically renew itself for the following year.
Misconception #2 – Written leases also require a notice of termination prior to September 1.
I have had numerous conversations with farm tenants throughout my career that can be summarized as follows:
“I did not receive my notice of termination before September 1, so I get to operate that farm next year” (even when a written lease with clear termination date was in effect).
If there is a written lease for the current farm year, and the lease has a definitive end date without any automatic renewal provisions, the lease terminates at the end of the stated lease period. No notice of termination is required to prevent automatic renewal in this scenario. This is why all farm leases should be in writing.
Misconception #3 – Termination notices need to be delivered via certified mail.
While many termination notices are delivered via certified mail, I find no legal authority that requires this method of delivery; however, this type of delivery has become customary in order to confirm receipt by the tenant.
In my experience, I have found that many farm tenants have become very adept at not signing for certified mail during the month of August. This provides an opportunity for the farm tenant to claim that a notice wasn’t delivered by September 1, if the certified mail was not signed for prior to the deadline.
Knowing that this is the case has caused me to take a“belt-and-suspenders”approach when delivering these notices of termination. I always attempt to provide termination notices via certified mail; however, I also typically send an additional notice or two via alternative means.
Misconception #4 – Leases cannot be changed after the September 1 deadline.
While it is true that a tenant could enjoy another year of favorable lease terms if a September 1 termination deadline has not been met, I have had great success in re-negotiating leases after this deadline by mutual agreement of the parties. Tenants are generally thinking longterm when it comes to landlord-tenant relationships. They often realize that if they choose not to negotiate fair terms on a lease for the next year, that next year might be their last on the farm. Landlords are in a strong bargaining position to reach mutually agreeable terms and substantially improve their lease, even when an official termination notice was not timely delivered.
Misconception #5 – My farm cannot be sold if it has an existing lease.
I have heard many clients state that their farm cannot be sold if there is a current lease on the property. This is not true. Farms can be sold with tenancies in place as long as the buyer accepts the terms of the lease. Our preference as brokers of real estate is to offer farms without such lease agreements on the property; however, transactions can still be successful with an existing lease. Without a lease on the property, we can maximize the value of the farm, as most buyers of agricultural land prefer to either:
• Operate the farm themselves if the buyer is an active farmer; or
• Have their preferred tenant operate the farm if the new owner is an investor.
I have had good success in negotiating fair buy-out provisions with holdover farm tenants on behalf of my seller clients so that a farm can be sold without the lease in place, in order to maximize the value of the sale.
At Agri Affiliates, our professional farm managers not only assist our new clients in terminating leases by the appropriate deadline(s), but we also provide the following services to our clients to make farm or ranch ownership a positive experience:
• Specialized management services in Nebraska, Colorado, Wyoming & Kansas;
• Tenant selection and lease negotiation,
• Preparation of crop and livestock plans,
• Budgeting and record-keeping,
• Quarterly and annual financial reporting,
• Purchasing of inputs,
• Marketing of crops and livestock,
• Supervision of finances and insurance,
• Soil and water conservation,
• Coordination and compliance with local and state governmental agencies
A complete list of services can be found at www.agriaffiliates.com/ management.
If you are interested in a no-obligation consultation relating to your individual farm operation, please contact one of our offices to discuss all the possibilities with our team! We are available in whichever method is most convenient for you: in-person meetings; phone conferences; email conversations; video conferences; etc. We look forward to visiting with you soon!