September 1st is the automatic renewal date for all oral land lease agreements in South Dakota. Per South Dakota codified law, landowners and renters must notify all parties involved in the existing lease in writing by September 1. Failure to do so results in the lease being renewed with the same terms and conditions.
Potential changes to the lease, which may include (but are not limited to) moving to a written lease, lease termination, changes to the rate per-acre or AUM, number of acres, rental rate due date, or maintenance requirements, should be considered and discussed.
SDSU Extension strongly advocates for the transition to written lease agreements. These agreements reduce miscommunication, misunderstandings, and provide a format that ensures the expectations of both sides are met and understood. They also offer a sense of security in the event of unforeseen circumstances. Written leases are also required if the lease's term is greater than one year. Also, remember that an agricultural lease's maximum length is 20 years.
If you would like to learn more about the different agricultural leases, the publications at Ag Lease 101 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. Depending on the conditions of the lease, involved parties may retain an attorney to create crop ground or pastureland leases.
Resource:
South Dakota codified law, Chapter 43-32: Lease of real property, 43-32-2, 43-32-5, 43-32-22.1.
