Farm Lease Notice Period Change Goes Into Effect October 1, 2021
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It is almost that time of year again when farm tenants and landowners may revisit their leasing agreements. For anyone considering renewing or terminating their existing lease agreement, be aware that the Maryland General Assembly recently amended the statute to clarify the required notice periods.
Effective October 1, 2021, the new language of Maryland Code Ann. Real Property Sec. 8-402, Landlord–Tenant – Nonrenewal of Lease – Notice Requirements changes the notice periods for both landlord and tenants as described below:
Farm tenancies from year-to-year: from 6 months to 180 days before the expiration of the current year of the tenancy.
Tobacco farm tenancies from year-to-year: from 3 months to 90 days before the expiration of the current year of the tenancy.
Written lease for a stated term over 1 week or a tenancy from month-to-month: from 2 months to 60 days before the expiration of the tenancy.
These new time frames apply automatically to all new lease agreements entered into on or after October 1, 2021. Parties to a lease can always include a longer notice period in their leasing agreement if they wish, but cannot agree to a period that is shorter than the law provides.
Overall, the effort simplifies the language to reduce ambiguity when interpreting the law and overcome confusion caused by the term “month” when the number of days in a month varies. For example, Lenore Landowner wants to terminate a year-to-year farm lease that expires on November 15, 2022. If Lenore were subject to the 6 month notice period, the deadline might arguably be May 15, 2022, May 17, 2022, or May 19, 2022, depending on how the parties calculate the months. Under the new provision, however, using the 180 days notice period before the lease expiration date, Lenore will have to notify the tenant regarding the decision to terminate the lease no later than May 19, 2022.
We have written often about why having a written lease is a smart business decision. For further reading on agricultural leases, check out previous blog posts:
Consider Using a Flex Cash Lease for 2021, or a Modified Fixed Cash Lease
As the Lease Termination Date Approaches Farm Landowners Have Options
Long-Term Leases Provide a Valuable Succession Planning Tool as Recent Court Case Highlights
For more information about general leasing considerations, incorporating conservation practices into lease provisions, or sample templates, visit umaglaw.org/publications-library/ (under Farm Leasing).