Do you have an Oral Lease agreement? Don’t forget to…

ORAL LEASE? DON'T FORGET TO GIVE NOTICE!

We are currently scheduling auctions and listings for Fall 2023. Call us today for a free market analysis and to get added to our Fall real estate lineup!

It is hard to believe but we have reached about halfway through the growing season for our crops here in the Midwest. The corn is starting to tassel, and the soybeans are starting to fill out. Wheat harvest is in full swing, and everyone is hoping for rain but with those Midwest thunderstorms comes the all too well-known wind and hail. With all the nice weather and summer activities going on the last thing on people’s minds is harvest, end-of-the-year decisions, and definitely not next year’s crop.

But time moves fast and there are decisions that we need to be making now as landowners that will affect next year’s outcome.

For example, if you are on an ORAL lease and thinking about making a tenant change or are thinking about selling your property this fall or next spring, you are required to give notice to your tenant in writing by September 1st of this year. In Nebraska, the oral lease period runs from March 1st to February 28th of the next year. Per Nebraska statute, you must give six months’ notice to your farm tenant to terminate a lease (September 1st) otherwise the tenant has the right to farm the next cropping season.

Even if there is a possibility that you want to sell your property or make a change in tenant on an oral lease it is a safe practice to give notice in writing. This does not mean that your tenant can’t farm your property next year. It may be a good point to switch to a written lease at that point if you don’t decide to change tenants or sell.

IN YOUR AREA

Live in the Midwest? We serve Nebraska, Iowa, & Kansas. So far in July, we conducted appraisals in:

NEBRASKA: Knox, Merrick, Hamilton, Gage, Saline, Buffalo, Keith, Nemaha

ARE YOU A REAL ESTATE AGENT?

We are always looking for real estate agents in our service areas to join our team. Please reach out to Ethan today!

UPCOMING LAND OWNER WORKSHOPS IN NEBRASKA

Do you live in Nebraska? We are sponsoring two upcoming Landowner Workshops. To learn more, please see the details below for each location.
Grand Island
Lincoln

REAL ESTATE UPDATE

Our recent Johnson County, Nebraska listing is under contract! Looking to sell property in Johnson County or any other area in Nebraska and Iowa? Give us a call!

TESTIMONIAL

We would love to hear from you! Have you used our services before? Maybe you know someone who has and you can share this information? We appreciate your reviews, either way. You can use the QR code below to submit your review on Google or share it with someone else. Please and thank you!

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ORAL LEASE? – DON’T FORGET TO GIVE NOTICE!

It is hard to believe but we have reached about halfway through the growing season for our crops here in the Midwest. The corn is starting to tassle, and the soybeans are starting to fill out. Wheat harvest is in full swing, and everyone is hoping for rain but with those Midwest thunderstorms comes the all too well-known wind and hail. With all the nice weather and summer activities going on the last thing on people’s minds is harvest, end of the year decisions, and definitely not next year’s crop. 

But time moves fast and there are decisions that we need to be making now as landowners that will affect next year’s outcome. 

For example, if you are on an ORAL lease and thinking about making a tenant change or are thinking about selling your property this fall or next spring, you are required to give notice to your tenant in writing by September 1st of this year. In Nebraska the oral lease period runs from March 1st to February 28th of the next year. Per Nebraska statute, you must give 6 months notice to your farm tenant to terminate a lease (September 1st) otherwise the tenant has the right to farm the next cropping season.

Even if there is a possibility that you want to sell your property or make a change in tenant on an oral lease it is a safe practice to give notice in writing. This does not mean that your tenant can’t farm your property next year. It may be a good point to switch to a written lease at that point if you don’t decide to change tenants or sell. 

On the other hand, if you are on a written lease, please review it and make sure that it is up to date and has a definite start and end date. If you were previously on a written lease, for example, in 2022 but forgot to rewrite and sign a new lease in 2023. You are now on a carryover oral lease and fall into the situation above.

Here at NextAg we will only rent land via a written lease, and we review that lease with our landowner clients and tenants each year. We meet in person with the tenant to sign the lease each year to gather their thoughts and perspective as stewards of the land to pass on to the absentee landowner. 

If you need a consultation of your lease, management of your land, or are looking to sell this fall or spring don’t hesitate to give us a call or send us an email and we will be more than happy to help. 

Land is what we do!

Ethan Sorensen

Owner

NEW Johnson County Listing

LAND FOR SALE

We are currently scheduling auctions and listings for Fall 2023. Call us today for a free market analysis and to get added to our Fall real estate lineup!

Unique Multi-Use Property in Johnson County, Nebraska

Nice recreational tract with good tree cover and seclusion or could be an addition to the pasture acres in your operation. This property does include a dwelling and outbuildings. Access is available from the south via gravel 733 Road. 

Legal Description: W 45.43 Acres of the Southeast Quarter (SE4) in Section 26-6N-11E of the 6th P.M. in Johnson County, Nebraska. (Parcel ID #490005624)

Total Acres: 45.43 +/-

2022 Real Estate Taxes: $1,854.08

Property Type: Recreational / Pasture

Location: Johnson Co., NE north of Tecumseh

Price: $155,000

Mineral Rights: All mineral interest the seller owns, if any, will be conveyed to the buyer(s).

Possession: Full possession will be given at the date of closing agreed to by the parties. 

The property is being sold in AS-IS condition. 

ARE YOU A REAL ESTATE AGENT?

We are always looking for real estate agents in our service areas to join our team. Please reach out to Ethan today!

FOLLOW US ON FACEBOOK

Live in the Midwest?

LIVE IN THE MIDWEST?

If you live in the Midwest, you’re in luck! We serve Nebraska, Iowa, & Kansas. Just in June, we’ve conducted appraisals in:

  • KANSAS: Smith, Ottawa, Republic, and Osborne county
  • NEBRASKA: Boyd, Saline, Buffalo, Cuming, Howard, Hall, York, and Dodge county
  • IOWA: O’Brien, and Lyon county
Ethan talks more about the services offered at NextAg. Click to watch and please reach out with any questions you may have!

ARE YOU A REAL ESTATE AGENT?

We are always looking for real estate agents in our service areas to join our team. Please reach out to Ethan today!

UPCOMING LAND OWNER WORKSHOPS IN NEBRASKA

Do you live in Nebraska? We are sponsoring two upcoming Landowner Workshops. To learn more, please see the details below for each location.
Grand Island
Lincoln

RECENT APPRAISALS

Testimonial

We would love to hear from you! Have you used our services before? Maybe you know someone who has and you can share this information? We appreciate your reviews, either way. You can use the QR code below to submit your review on Google or share it with someone else. Please and thank you!

HAPPY 4TH OF JULY

We want to wish everyone a happy and safe 4th of July holiday!

FOLLOW US ON FACEBOOK

We want to wish everyone a happy and safe 4th of July holiday!

Selling Your Land via Auction

This is a simple question with a complicated answer. What kind of auction format should I use? Are the market conditions right for an auction? Who should I have conduct the auction? These are all questions that are raised when considering selling your land via auction. At NextAg we guide you through this decision process and custom tailor our approach to you and your property’s needs. 

Selling Your Land via Auction

What kind of auction format should I use?

There are many ways to conduct an auction from a traditional auction setting to a more modern approach with Online Only Auctions. Let’s highlight a few options that we offer at NextAg and how they could pertain to your situation.

Simulcast Auction/Live Auction – A modern twist on the traditional auction setting, the simulcast/live auction method combines the traditional in-person auction with the online-only approach. The simulcast allows you to have an in-person auction where patrons can come in-person and bid while also allowing your bidders the chance to bid anonymously via our online bidding platform. 

Online-Only Auction – A simple, effective auction format that allows total anonymity for the bidders through our online bidding software. This auction method allows anyone from anywhere in the world with internet access to bid on your property. This method is usually timed and ends after all bidding has ceased for a set amount of time. 

Sealed Bid Auction – The sealed bid auction can be a very useful tool in the right situation. This method is a slower paced auction environment where bidders submit their bids on a standard bid sheet to us, here at NextAg. There is usually a deadline to submit bids and then we sit down with the sellers and either select a winning bid or we can invite back the top bidders to perform a small exclusive mini-auction of the top sealed bids. This method allows the sellers a comfortable, slower timeline to make their decision. 

Are the market conditions right for an auction?

Market conditions for agricultural land right now are strong. Higher commodity prices and unstable stock market conditions have driven up farmland prices in the Midwest. The ability to buy land in an instant via online auctions, etc. has also played a part in higher land sales. Auctions in the current market conditions allow for fast, efficient sale times resulting in top market values. 

Who should I have conduct my auction?

The NextAg advantage, when it comes to selling your property, is that we know how important this transaction is because we are landowners, as well. We are a family-owned and operated business with the owner himself raised on a multi-generational Nebraska farm where hard work and doing the right thing is the standard. Your farm and the generations of hard work and sacrifice do not go unnoticed when we are working with you and your family during this process. Our goal is to be honest, transparent, and strive to get you the best results for the sale of your farm.

How do we get the best results?

  • Instant contact with thousands of landowners around your property with up-to-date mailing lists
  • State of the art bidding software
  • Efficient and effective marketing techniques
  • Local knowledge of the area

Still have more questions or maybe you are ready to get started? Please reach out today! We are happy to answer any questions you may have and discuss your specific needs. You can also visit our website at, https://nextagrealestate.com/ or call us at, 402-540-0053.

5 Things Every Landowner Must Do Before Renting Land

As we have begun the negotiating season for land leases before next year it is always good to review these steps to make sure you have everything in place as a landowner for a successful crop season. As a normal practice, NextAg Appraisal & Realty, review these things each year for every client prior to drafting a new lease before each cropping season. The biggest thing to keep in mind as a landowner is transparency with your tenant and to make sure everyone is on the same page and understands the term and expectations of your farm lease. 

Landowner Must-Do

1. Determine Your Lease Termination Date

Here in the Midwest the normal lease term runs from March 1st to February 28th of the next year. Having a March 1st starting date allows the farmer and landowner the opportunity to change any information at the farm service agency and with their crop insurance prior to the deadline of March 15th for those entities. 

It is always a good practice to start any negotiations of changes to the lease after the first of the year to allow for some time before the March 1st suggested start date of the new lease. 

2. Check Your Land’s Fair Market Rental Value

There are many resources out there to determine a fair market value rental rate. The University of Nebraska Land Survey is always a good resource to find a range of rental rates for your region of the state.

Having a tenant with good farming and fertility practices allows you to obtain fair market rents year in and year out, knowing your land is at top production. 

3. Have a Written Lease Agreement

As a land manager I always require a written farm lease that renews each year. A written farm lease allows for transparency of expectations to the tenant as well as the landowner. A written farm lease allows for termination without notice in Nebraska at the end of the lease term. Details to be include in the written lease are: lease term, rental rate and/or share terms, who maintains common areas, and who pays for certain expenses. 

A disadvantage of an oral lease is no hard expectations, room for discrepancy, and the requirement in Nebraska to give 6 months notice prior to changes or termination of the oral lease.  

4. Confirm Crop Insurance and Farm Program Signup

The deadline for any changes to crop insurance or farm program signup is March 15th of the current crop year. Changes include: name changes, address changes, lease changes, etc. Always contact your crop insurance agent and the farm service agency to make sure everything is correct for the coming crop year. 

5. Think About Hiring an Expert

A farm manager is not for everyone but sometimes people don’t realize that they could benefit from the service. My goal as a farm manager is to get the full potential from a piece of property while working with the tenant to be efficient. Transparency between parties is also important when discussing the expectations of the landlord and tenant. Having someone that can speak the language while advocating on the landowners behalf can be very beneficial. 

Duties and Responsibilities of a Farm Manager

  • Negotiate leases
  • Collect income and pay expenses
  • Maintain compliance with crop insurance, FSA farm programs, and CRP contracts (if applicable)
  • Visit the property periodically and provide written reports
  • Accounting reports to the owner of income and expenses

Please contact NextAg Appraisal & Realty about any of your land questions. In addition to farm management services we provide: 

Certified General Appraisals – certified in Nebraska, Iowa, Kansas, and surrounding states. Specializing in agricultural property both vacant and improved. 

Real Estate and Auctions – brokerage services are available in Nebraska and Iowa to sell your agricultural asset. NextAg has the most up-to-date online auction services, marketing services, and mailing lists to get the most for your property.

Leasing Land?

The biggest thing to keep in mind as a landowner is transparency with your tenant and to make sure everyone is on the same page and understands the term and expectations of your farm lease.

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