Senate File 2249 - Introduced SENATE FILE 2249 BY COMMITTEE ON AGRICULTURE (SUCCESSOR TO SSB 3079) (COMPANION TO HF 2344 BY COMMITTEE ON AGRICULTURE) A BILL FOR An Act requiring that agreements to terminate farm tenancies be 1 in writing. 2 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA: 3 TLSB 5623SV (1) 86 da/sc
S.F. 2249 Section 1. Section 562.6, Code 2016, is amended to read as 1 follows: 2 562.6 Agreement for termination. 3 If an a written agreement is made fixing the time of the 4 termination of a tenancy, whether in writing or not, the 5 tenancy shall terminate at the time agreed upon, without 6 notice. Except for a farm tenant who is a mere cropper or a 7 person who holds a farm tenancy with an acreage of less than 8 forty acres where an animal feeding operation is the primary 9 use of the acreage, a farm tenancy shall continue beyond the 10 agreed term for the following crop year and otherwise upon 11 the same terms and conditions as the original lease unless 12 written notice for termination is served upon either party or 13 a successor of the party in the manner provided in section 14 562.7 , whereupon the farm tenancy shall terminate March 1 15 following. However, the tenancy shall not continue because of 16 an absence of notice if there is default in the performance of 17 the existing rental agreement. 18 EXPLANATION 19 The inclusion of this explanation does not constitute agreement with 20 the explanation’s substance by the members of the general assembly. 21 BILL. This bill would require parties to a lease for land 22 used in farming to make any agreement terminating the lease in 23 writing. 24 BACKGROUND. A farm tenancy is a type of lease in which 25 the lessor receives some form of rent from a lessee who uses 26 the leased land to produce crops or livestock. The relevant 27 statutes refer to the lessee as the “farm tenant” and the 28 farm’s tenant’s leasehold interest as a “farm tenancy” (see 29 Code section 562.1A). The lease may be made either in writing 30 or orally. Generally, all farm tenancies terminate on March 31 1 at the end of the farm tenant’s crop year. However, in 32 order to effectuate the termination, one party to the lease 33 must have given the other party written notice of termination 34 by the previous September 1 (Code sections 562.5 through 35 -1- LSB 5623SV (1) 86 da/sc 1/ 2
S.F. 2249 562.7). Without such timely written notice of the termination, 1 the lease automatically continues, under its same terms and 2 conditions. The following September 1 is the latest date 3 that a party may again exercise a right of termination by 4 written notice effective the following first day of March. One 5 exception to the written notice requirement allows the parties 6 to agree to the termination either in writing or orally. The 7 parties may make the agreement any time during the term of the 8 lease, and the agreement may provide for a termination date 9 earlier than March 1. 10 The bill, in part, is a response to the Iowa Court of 11 Appeals’ decision in Auen v. Auen, 851 N.W.2d 547 (Iowa Ct. 12 App. 2014). 13 -2- LSB 5623SV (1) 86 da/sc 2/ 2