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Frequently Asked Questions:

What happens if one of the parties in a farmland lease dies during the term of the lease?

As a matter of common law, the terms of a farmland lease continue after the death of either party. The deceased party’s interests and/or responsibilities descend to the applicable heirs. However, state laws, the kind of lease involved, and any applicable lease language will determine the outcome in each case.

The parties can also agree to terminate a lease upon the death of either party and can spell out in the lease what happens (e.g., to the crops and any associated income) if this occurs. Additionally, if the landowner dies during the term of a lease, the type of ownership in which the land was held will be relevant. Different states’ laws handle these situations differently. Consequently, it’s worthwhile to address this contingency in a lease.

Posted in: Lease Agreements, Transfer, Sale and Sublease