Oral Leases Renew September 1, 2015

Aug 10, 2015

By Heather Gessner

Oral leases for agriculture ground in South Dakota automatically renew on September 1st. If either the landowner or tenant wishes to make changes to any of the components of the oral lease written notice must be given, in writing, by the September first deadline.

Once written notice is given the oral agreement continues until March 1, 2016 at which time a new contract can take effect. This allows the tenant to finalize any harvesting or grazing on those acres. An exception to this would occur if either landowner or tenant fails to live up to the terms and conditions of the original lease.

The automatic renewal includes all the current terms and conditions in the existing lease, including but not limited to: who the land is rented to, when payment is due, the per acre rate, stipulations for grazing, hunting or other land use restrictions, and any weed control or fencing agreements, etc.
Why September 1st?

September 1st allows time for management decisions to change based on the continuation of the agreement or any changes to the lease to be incorporated by the current renter. If the tenant knows they will be farming the land in the upcoming year plans for fall tillage, fall fertilizer applications, winter wheat or cover crop planting may be done, as well as grazing plans for corn residue can be made. If the land will be changing hands in March the decisions will likely be different.
What is the average rental rate?

The top question asked and discussed is the average rental rate in a given area. South Dakota State University (SDSU) and the United States Department of Agriculture-National Agriculture Statistics Service (USDA-NASS) provide average land value and rental rate information annually. Both of these surveys are publically available. While similar in nature the surveys target different audiences for the rental information. The SDSU survey targets agriculture industry professionals (bankers, land brokers/auctioneers, extension staff etc.) and the USDA-NASS survey targets producers (farmers and ranchers).

The surveys can be found by clicking these links:

USDA-NASS Cash Rents and Land Value Maps
South Dakota Agriculture Land Market Trends 1991-2015

Click here to see more...

Video: Evolution of Beef Cattle Farming

The Clear Conversations podcast took to the road for a special episode recorded in Nashville during CattleCon, bringing listeners straight into the heart of the cattle industry. Host Tracy Sellers welcomed rancher Steve Wooten of Beatty Canyon Ranch in Colorado for a wide-ranging discussion that blended family history and sustainability, particularly as it relates to the future of beef production.

Sustainability emerged as a central theme of the conversation, a word that Wooten acknowledges can mean very different things depending on who you ask. For him, sustainability starts with the soil. Healthy soil produces healthy grass, which supports efficient cattle capable of producing year after year with minimal external inputs. It’s an approach that equally considers vegetation, animal efficiency, and long-term profitability.

That philosophy aligned naturally with Wooten’s involvement in the U.S. Roundtable for Sustainable Beef, where he served as a representative for the Colorado Cattlemen’s Association. The roundtable brings together the entire beef supply chain—from producers to retailers—along with universities, NGOs, and allied industries. Its goal is not regulation, Wooten emphasized, but collaboration, shared learning, and continuous improvement.