BROOKINGS, S.D. – Oral agricultural land lease agreements automatically renew on Sept. 1, 2025, and South Dakota State University Extension experts strongly encourage transitioning to written lease agreements.
Per South Dakota codified law, landowners and renters must notify all parties involved of any changes to the existing lease in writing by Sept. 1. Failure to do so results in the lease being renewed with the same terms and conditions. This renewal period is an excellent time to transition to a written lease.
“Written agreements reduce miscommunication and misunderstandings, while providing a format that ensures both sides' expectations are met and understood,” said Heather Gessner, interim Agricultural and Natural Resources Program Leader and SDSU Livestock Business Management Field Specialist.
She said a written lease provides a sense of security for both sides, in the event of unforeseen circumstances. Written leases are also required if the lease's term is greater than one year. Any agricultural lease's maximum length is 20 years.
“In July and August, the number of calls into the office from landowners and tenants jumps dramatically,” said Heather Gessner, SDSU Extension interim Agriculture and Natural Resources Program Leader and Livestock Business Management Field Specialist. “They are looking to make changes to their leases, including oral leases.”
Potential changes to the lease that should be considered and discussed may include moving to a written lease, lease termination, changes to the rate per acre or animal unit month (AUM), number of acres, rental rate due date or maintenance requirements.
“If you are making any changes to an oral lease, I would encourage you to send the other party a certified letter that lets them know you will not be participating in the 2026 lease at the current terms and conditions. A certified letter serves as a formal notice to the other party that a change in the lease will be made and verifies they received the information,” Gessner adds.
If you would like to learn more about the different agricultural leases, the publications at AgLease101.org cover cash leases, share agreements and flexible leases for cropland and pasture acres. In addition to the publications, the site includes templates that can be used to personalize leases in South Dakota.
For more information, contact Heather Gessner, SDSU Extension interim Agriculture and Natural Resources Program Leader and Livestock Business Management Field Specialist.