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Verbal rental agreement termination
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kryptonite_225
Posted 4/15/2011 06:05 (#1725139)
Subject: Verbal rental agreement termination


Central Michigan
Is there any written laws regarding terminating a verbal land rental agreement? I know Iowa has 1, but this is in Michigan. Went to pay the rent by the 15th like before, and was told it was rented. This is after our fall tillage was done. And yes I knew this guys character, and should have had a written contract with him.
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Barker
Posted 4/15/2011 08:14 (#1725254 - in reply to #1725139)
Subject: RE: Verbal rental agreement termination


WC Indiana
Not sure in Michigan but although the law is ambiguous in Indiana there is laws that requie notification in the fall. I was in court several years ago, I bought a farm in December and the the guy farming said it was too late for me to farm it. It went to court but I gave in and let him farm it becasue it was going to be in court for a year and wasn't worth the fight. I let him farm it. The attorneys I contacted said there were vague laws.

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starvation
Posted 4/15/2011 08:17 (#1725258 - in reply to #1725254)
Subject: Re: Verbal rental agreement termination


mn
I to think you would have got or should of gotting a letter last fall,if you don't farm it this spring at least try to get your money for the fall tillage done.
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iseedit
Posted 4/15/2011 08:19 (#1725266 - in reply to #1725139)
Subject: RE: Verbal rental agreement termination



central - east central Minnesota -

You should get your fertility and tillage expense back. Most likely have to go to court to do it, but it's yours.

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hawk1
Posted 4/15/2011 10:03 (#1725473 - in reply to #1725266)
Subject: RE: Verbal rental agreement termination


WOW I'd call a attorney asap. Like 5 min ago!!!!!
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greenpower
Posted 4/15/2011 10:39 (#1725526 - in reply to #1725473)
Subject: RE: Verbal rental agreement termination


N/E Iowa
I was told here in iowa that they have to let you know by Sept 15th?
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hawk1
Posted 4/15/2011 11:52 (#1725647 - in reply to #1725526)
Subject: RE: Verbal rental agreement termination


Its Sept 1 in Iowa not the 15
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greenpower
Posted 4/15/2011 12:04 (#1725660 - in reply to #1725647)
Subject: RE: Verbal rental agreement termination


N/E Iowa
Thanks. My mistake.
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Fastline
Posted 4/15/2011 14:57 (#1725878 - in reply to #1725139)
Subject: Re: Verbal rental agreement termination


EC MN
Seems to be alot of this going on this year. I just checked here in Minnesota; the landowner must give a 90 day written notice if not renting to the same party again. This is the case if there is a written contract or just a verbal agreement. MN calls that "Tennacy at Will".
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pvfarms
Posted 4/15/2011 15:32 (#1725921 - in reply to #1725878)
Subject: Re: Verbal rental agreement termination


Northwestern Minnesota
90 days from the time for field work? that would have to be in Dec in northern MN so a person would have plenty of time
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Fastline
Posted 4/15/2011 15:55 (#1725943 - in reply to #1725921)
Subject: Re: Verbal rental agreement termination


EC MN
That is what I understand.
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hawk1
Posted 4/15/2011 16:11 (#1725957 - in reply to #1725943)
Subject: Re: Verbal rental agreement termination


Who farms in michigan? I'd think one person would know the law!
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Gerald J.
Posted 4/15/2011 17:29 (#1726060 - in reply to #1725878)
Subject: 90 days to termination. NT



Gerald J.
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Cattle Feeder
Posted 4/15/2011 18:23 (#1726138 - in reply to #1725647)
Subject: Re: Verbal rental agreement termination


Only on anything over 40 acres and pastures are only 30 days notice. Had a neighbor learn that the hard way.
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kryptonite_225
Posted 4/15/2011 18:57 (#1726194 - in reply to #1726060)
Subject: Re: Verbal rental agreement termination


Central Michigan
Hawk1...I know it right. I laughed when I read that. But there is some very good farm land in michigan, just is in pockets, not the whole state like Iowa ............thanks for all the replies, it seems there has been some. reconsideration now, the lower rent(mine) looks like will be farming it. Had a talk today with his wife and he called me back. There will be a contract this time
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kylesupplee
Posted 4/16/2011 07:21 (#1726813 - in reply to #1725139)
Subject: RE: Verbal rental agreement termination


Thompsontown, Pennsylvania
lol atleast the landowner didn't decide he could get it custom farmed and took it away for himself...had that happen to me this winter and this was after i had hauled most of the winters dairy manure over there (milk 45 cows, daily haul manure, and the rented farm is a sandstone base that responds better to manure than N while the river bottom at home i can get away with commercial fert.).....only thing that REALLY grinds me is the father (is actually the son-in-law and grandson of the owner who are going to "farm" it) tells me nothing against you, we've been thinking about this since summer. Saw me when i chopped some silage for them and bagged it for their steers, saw him in october when i was planting rye cover on stuff, and HE never said a darn thing...works construction and gets laid off in winter so you'd have thought at some point when he saw tractor and spreader come up road, turn in lane and spread, he'd have given me some ideo....then he gets all pissy and upset when i imply to him that manure is probly gonna cost him between $1-2k lol sorry to vent just my reasoning why verbal agreement as B.S.....
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hillfarmer
Posted 4/16/2011 08:17 (#1726858 - in reply to #1726813)
Subject: RE: Verbal rental agreement termination



From what I went thru in the courts last summer ,

The most important thing is to have the right lawyer

the laws suck here
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lorenk
Posted 4/16/2011 08:25 (#1726871 - in reply to #1726194)
Subject: Re: Verbal rental agreement termination


Grand Rapids, MI
Kevin,

Sorry for not seeing this earlier. There are a few other MI folks here, some of us are just too busy to be on all the time ;-) I am glad it sounds like it is working out. For your and others future reference, I will give some info re: what I know.

Let me preface by saying I am not an attorney, so the warranty on this advice is what you paid for it :-)

There is no law specific to ag land rentals in Michigan like there is in other states (e.g. Iowa) so we need to examine the situation under general contract law. Under general contract law a verbal contract is fully as binding and enforcable as a written contract. Your ability to prove what the contract entailed is the real problem with verbal contracts. That being said, the question would be first if you had an enforcable verbal contract and second whether you can prove the contract exists.

To be enforcable a contract needs 5 things.

1. Competent Parties--I assume this is covered
2. Legal subject matter. I assume this is ok as well.
3. An offer. Did you offer to rent the land for 2011 crop, or did he offer it to you?
4. Acceptance. Did you accept his offer or he yours?
5. Consideration. Each party must provide consideration. This is something of value, or something you do or promise to do in the future. In this example I would assume that his consideration would be allowing you to farm the land, and your consideration would be a promise of payment. Generally courts hold that this needs to be specific. If you told him that you would pay him $x or the same as last year, etc. this would be specific consideration. If on the other hand he said "hey you want to rent my land?" you said, "yea I would love to" then you discussed price and didn't come to a conclusion on what price to pay, a court would probably not hold that this was an enforcable contract.

To be able to prove the contract exists for a verbal contract, you pretty much need the other party to agree to the conversation or a witness, etc. This is why written contracts are much preferred, they are not subject to changing memories.

Hope this helps some!

Loren
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TJFarms
Posted 4/16/2011 11:36 (#1727195 - in reply to #1725139)
Subject: RE: Verbal rental agreement termination


SE North Dakota
Same thing happened to us this year. Been renting 80 acres from my wifes uncle for the last 5 years and went to pay him this spring and he said it is already rented out to a neighbor. Sounds like this is happening all over the country.
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hawk1
Posted 4/16/2011 13:08 (#1727321 - in reply to #1727195)
Subject: RE: Verbal rental agreement termination


I really think some of you guys need to get a group together in your states and contact your state reps about some fair laws about farm termination rights. With todays prices someone could come in at the last min and offer some huge amount and your out to the dog house it sounds like. I'd look up Iowa laws and try to get them to your state!
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