Wallaces Farmer

Legal Issues: Readers ask about retaining control of data, dealing with fence disputes and renegotiating leases.

5 Min Read
Cornfield
DEADLINE: Remember, you must notify your tenant or landlord by Sept. 1 if you want to change the terms or cancel a cropland lease in Iowa. Farm Progress

We receive questions from readers regarding specific legal issues they have encountered. Here are some timely questions and our responses.  

Retaining ownership of data

Every year, I’m asked to sign agreements relating to data generated from tools I use to increase yields on my farm, such as GPS. I want to ensure that I retain ownership of my own data and that my privacy is protected. What is farm data and who does it belong to? As you may imagine, this area of the law is ever-evolving. Farm data, as we know it today, consists of agronomic data (soil nutrient levels, yields, application levels, etc.), machine and computer data, and weather data relating to the climate in a particular area.

Farmers can now pinpoint the exact yield in every area of their fields. You hit the nail on the head with your question. The two big areas of concern from a legal standpoint with respect to farm data is protecting the privacy of farm data and protecting the ownership of farm data. 

Perhaps the best route to avoid legal pitfalls is to protect your farm data by negotiating upfront and reading what you are asked to sign (or have your legal counsel review it if you are concerned). The owner of the data needs to take steps to protect that data and maintain its secrecy.

For instance, in a farm lease situation, one may want to include language granting the tenant the rights to the data on the leased farmland until the conclusion of the lease. Following the termination of the lease, the farm data must be transferred back to the landowner or the subsequent tenant.  

Dealing with fence issues

My farm is located adjacent to a farm that was purchased by an out-of-state landowner last year. The fence is in disrepair, and last month, I called the new landowner to request that the fence be repaired and that we split the cost. The new landowner has refused to fix his portion of the fence. What is the best way to proceed from a legal standpoint? I have a cow-calf operation, and I am concerned with the viability of the fence. Communication is the key to avoiding fencing disputes and a good understanding of the law remains the best way to resolve issues that do arise quickly and amicably.

The best piece of advice I can give you in dealing with the adjacent landowner is to provide the landowner with information in writing so they can review and understand Iowa’s laws. 

Iowa Code Chapter 359A governs partition fencing in this state. A partition fence is a fence built on the property line between adjacent tracts of land. The law states that a landowner can be compelled to share in the cost of creating or maintaining a partition fence upon the written request of the adjacent landowner.

If the adjacent landowners can’t come to an agreement upon dividing fencing responsibilities, the Iowa Code authorizes township trustees to act as fence viewers and decide partition fence controversies. The decision of the fence viewers is binding on current and future owners. A fence viewer’s decision may be appealed to the county district court. Chapter 359A also details the requirements for a “legal” fence in Iowa, laying out the materials acceptable for a lawful fence. 

In 1995, the Iowa Supreme Court held that Iowa’s fencing statute wasn’t unconstitutional as applied to landowners who did not own animals but were required to pay for part of the maintenance of a fence adjoining land where livestock were kept. The court found that the statute applied equally to all adjoining landowners and was not “unduly oppressive.”

In the case, the adjoining urban landowners who did not keep livestock argued that the law requires them to “expend substantial sums of money to maintain and repair a fence which they derive no benefit.” The court disagreed and held that “a law does not become unconstitutional because it works a hardship.” 

As I have mentioned in the past, it is always a good idea to put any agreement into writing. Iowa Chapter 359A allows for the writing and recording of fence agreements between adjoining landowners. In fact, a written and properly recorded fence agreement “runs with the land,” and protects landowners old and new. 

Renegotiating a farm lease

I received a notice to terminate my farm lease (ahead of the Sept. 1 deadline) with a note from my landlord indicating that they want to renegotiate for next crop year. We are on good terms, and I want to continue to rent the property. Do you have any tips for renegotiating a farm lease in light of the current farm economy? As we discussed last month, the deadline for farm lease terminations is rapidly approaching (leases must be terminated prior to Sept. 1).

If your lease is terminated, the hardest part of renegotiating is approaching the landlord and starting the conversation. Many landlords and tenants have worked together for many years and have the same goal in mind: the continuity and stability of their farming operation.  

Keep these tips and ideas in mind when approaching your landlord:  

Suggest a different arrangement. Some tenants have successfully renegotiated lower cash rental rates by using flexible leases containing terms allowing a landlord a share of gross revenue or a base rent plus bonus. Typically, these leases are used by both parties to level out the playing field or spread the risk between both parties. Perhaps a tenant is willing to sign a long-term lease at a reasonable rate, spreading the risk between landlord and tenant, and “locking in” a fair rate over the long term.  

Bring up beginning-farmer incentives.  If you are a beginning farmer, educate the landowner on the financial and tax incentives available through the Iowa Ag Development Division, which administers the Iowa Beginning Farmer Tax Credit and Loan Programs.  

Pay for conservation practices. Propose to your landlord that you as the tenant will invest in conservation measures in lieu of paying extra cash rent. 

Herbold-Swalwell is an attorney with Brick-Gentry in Des Moines. 

 

 

 

Read more about:

Land Leases

About the Author(s)

Erin Herbold-Swalwell

Erin Herbold-Swalwell is an attorney with Wickham & Geadelmann PLLC.

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