Oral Farm Leases and R.C. 5301.71

Complications for Terminating Farm Leases: R.C. 5301.71

For centuries, Ohio landowners rented their land to be farmed through handshake deals or by scribbling ill-defined terms on a piece of paper. The same land could be farmed for years without any formal writing to accurately memorialize the understanding between the farmer and the landowner. Disputes and litigation often arose when one party cancelled the lease or attempted to modify its terms. In response, the Ohio General Assembly passed House Bill 397, which was signed into law by Governor Mike DeWine in 2022. The bill, which was aimed at increasing protections for farmers, was codified at R.C. 5301.71.

R.C. 5301.71 changes the way that farm leases can be terminated in Ohio. Under the new code section, farm leases that do not have a specified termination date or deadline for giving notice of termination will automatically continue for another year unless the landowner gives the tenant notice of termination in writing by September 1^st. Notice can be given to the tenant by personal delivery, fax, or email. This deadline applies only to landowners, not tenants. If notice is given prior to the September 1^st deadline, the lease terminates upon the date of harvest or December 31^st, whichever is sooner. This requirement only applies to agricultural farming. It does not apply to pasture, timber, farm buildings, horticultural buildings, or equipment.

Landowners who lease farmland should be aware of the requirements of R.C. 5301.71. If the termination of the lease is not clearly addressed by the parties, the farmland will be bound by a lease for another year unless notice is properly given by the September 1^st deadline. This will impact any chance a landowner may have to renegotiate lease terms, lease the land to a new tenant, or even develop the land for other use. Luckily, this deadline can be easily avoided and managed. Because the deadline set by R.C. 5301.71 applies only to leases that do not otherwise address termination, landowners can avoid the statute’s requirements by ensuring there is clear termination language in the leases they enter into with farmers. This language should clearly address when the lease ends and how it may be terminated.

Dealing with farm leases in Ohio can certainly be a sticky wicket for landowners and farmers alike. If you have questions about your rights and obligations under a current farm lease, or you wish to have a new lease prepared, please contact your FGKS Law attorney. For more information about FGKS Law attorneys and practice areas, please visit www.fgks-law.com.