Form 1940-51 Crop Share Lease - Landlord

7 CFR 1941, Operating Loan Policies, Procedures and Authorizations and Closings

FSA1940-0051

7 CFR 1941, Operating Loan Policies, Procedures and Authorizations and Closings

OMB: 0560-0162

Document [pdf]

Download: pdf | pdf

Close
This form is available electronically.

Position 1
U.S. DEPARTMENT OF AGRICULTURE
Farm Service Agency

FSA-1940-51
(06-06-02)

Form Approved - OMB No. 0560-0162

CROP-SHARE-CASH FARM LEASE
(See Page 7 for Privacy Act and Public Burden Statements.)

THIS LEASE is entered into this (1) ____________________________________ day of (2)

___________________________, (3) 20_____

between (4) _____________________________________________________________, landlord, of (5) _______________________________
(Address of Landlord)

______________________________________________________ and (6) ______________________________________________________,
tenant, of (7) _______________ _________________________________________________________________________________.
(Address of Tenant)

A. PROPERTY RIGHTS. The landlord hereby leases to the tenant, to occupy and use for agricultural and related purposes, the following
described property, hereinafter referred to as the "farm," located in (8) _______________________________________ County, State of
(9) ____________________________________, and commonly known as the (10) _____________________________________ farm.
Supplementary information: (11) __________________________________________________________________________________________
_____________________________________________________________________________________________________________________
_____________________________________________________________________________________________________________________
and consisting of (12) __________________ acres, more or less, together with all buildings and improvements thereon, and all rights thereto except
as specified below:
1. Reservation of land and buildings. The landlord reserves, the right to use the following land and buildings for the following purposes:
(13) _________________________________________________________________________________________________________________

_____________________________________________________________________________________________________________________
_____________________________________________________________________________________________________________________
2. Right of entry. The landlord reserves the right to enter the farm at any reasonable time for purposes (a) of consultation with the tenant; (b)
of making repairs, improvements, and inspections; (c) of developing mineral resources; and (d) after notice of termination of the lease is given, of
plowing, seeding, fertilizing and such customary seasonal work, none of which is to interfere with the tenant in carrying out regular farm operations.
This right is also reserved to the landlord's agents, employees, and assigns.
3. No right to sublease. The landlord does not convey to the tenant the right to lease or sublet any part of the farm or to assign the lease to any
person or persons whomsoever.
4. Transfer of farm. If the landlord should sell or otherwise transfer title to the farm, such sale or transfer will be subject to the provisions of
this lease.
5. Heirs and successors. The terms of this lease shall be binding upon the heirs, executors, administrators, and successors of both landlord and
tenant in like manner as upon the original parties. However, in event the lease is for more than one year, the heirs or successors of the tenant shall
have the option to give written notice of termination effective at the end of the lease year in which death occurs.
6. Right to lease. The landlord has the right to lease the farm, and so warrants to the tenant. Further the landlord will defend the tenant's
possession against any and all persons whomsoever.
7. Rent additional land. The tenant will not, unless written consent of the landlord is obtained first, farm more than (14) ___________ acres
of additional land and will not enter into any other business, occupation, or sideline.
8. Additional agreements regarding property rights:
(15) __________________________________________________________________________________________________________________

Page 2 of 7

FSA-1940-51 (06-06-02)
B. LAND USE AND LIVESTOCK PRODUCTION
1. Land use. The agreed-upon use of the land is outlined in the following table:
(16)
USE OF LAND

(17)
ACRES

(18)
FIELDS

(19)
SEED VARIETY

(20)
KIND OF SEED

(21)
AMOUNT OF FERTILIZER PER ACRE

FOR FAMILY LIVING
WOODLAND
FARMSTEAD AND LOTS
TOTALS (22)

2. Livestock production. The tenant may engage in the following production of livestock:
(23)
KIND OF LIVESTOCK

(24)
MAXIMUM NUMBERS

(25)
SPECIAL HEALTH, SANITATION, OR FEEDING PRACTICES

3. Acres and numbers. The acres of crops and the fields on which grown and numbers of livestock shown above are those planned for the first
year of this lease. They may be adjusted within the year or from year to year by mutual agreement.
4. Crop and livestock adjustments. If it is impracticable in any year, from causes beyond the tenant's control, to grow the crops and to keep
within the number of livestock according to the plan shown, appropriate adjustments will be made by mutual agreement between the parties.
5. Restriction on livestock. Neither the owner nor the tenant shall bring livestock that is not covered by this agreement on the farm during the
period of the lease without express permission of the other party.
6. Home use. The tenant and landlord may take for home use the following kinds and quantities of jointly owned crops:
(26) ___________________________________________________________________________________________________________________

FSA-1940-51 (06-06-02)

Page 3 of 7

8. Division of property. At the termination of this lease, all jointly owned property will be divided or disposed of as follows:
(28) ___________________________________________________________________________________________________________________

_______________________________________________________________________________________________________________________
_______________________________________________________________________________________________________________________
C. IMPROVING, CONSERVING, AND MAINTAINING THE FARM. To improve the farm, conserve its resources, and maintain it in a high
state of cultivation, the two parties agree as follows:
1. General maintenance. The tenant will maintain the farm during the tenancy in as good condition as at the beginning, normal wear and
depreciation and damages from causes beyond the tenant's control excepted.
2. Good husbandry. The tenant will operate the farm in an efficient and husbandlike way, will do the plowing, seeding, cultivating, and
harvesting in a manner that will conserve the landlord's property.
3. Cropping practices. The tenant will not, without oral consent of the landlord, (a) plow permanent pasture or meadowland, (b) cut live trees
for sale or personal uses, but will take for fuel or use on the farm only dead or unmarketable timber designated by the landlord, (c) allow livestock
other than the tenants own on stalkfields or stubblefields, (d) burn or remove cornstalks, corncobs, straw, or other crop residues grown on the farm,
(e) pasture new seedings of legumes or grasses in the year they are seeded, and (f) plan legumes on land not known to be thoroughly inoculated
without first inoculating the seed.
4. Livestock practices. In caring for livestock, the tenant will follow health and sanitation measures and guard against disease.
5. Manure and crop residue. The tenant will spread the manure, straw, or other crop residues on the farm as soon as practicable on fields
agreed upon by the two parties, except as follows:
(29) ____________________________________________________________________________________________________________________

Page 4 of 7

FSA-1940-51 (06-06-02)

13. Purchase of materials. The tenant may buy, without further authorization, materials for normal maintenance and repairs in a total amount not
to exceed (32) $_________________ within each year, and the landlord will credit or reimburse the tenant for such expenditures, as follows:
(33) ___________________________________________________________________________________________________________________

_______________________________________________________________________________________________________________________
_______________________________________________________________________________________________________________________
14. Add improvements. The tenant will not, without written consent of the landlord, (a) erect or permit to be erected on the farm any
nonremovable structure or building, or (b) incur any expense to the landlord for such purpose, or (c) add electrical wiring, plumbing or heating to any
buildings, and, if consent is given, the tenant will make such additions meet standards and requirements of power and insurance companies.
15. Conservation practices. The tenant will control soil erosion as completely as practicable by stripcropping and contouring, and by filling in or
otherwise controlling small washes or ditches that may form.
16. Conservation structures. The tenant will keep in good repair all terraces, open ditches, and inlets and outlets of tile drains, preserve all
established watercourses or ditches including grass waterways when seed and fertilizer are furnished by the landlord, and refrain from any operation or
practice that will injure them.
17. Compensation for improvements. The two parties will carry out new conservation practices and measures and make other improvements,
and share contributions and costs necessary for completion of such practices and improvements as set forth below. The tenant will be reimbursed by
the landlord when the practice, measure, or improvement is completed, or the tenant will be compensated for its unexhausted value when the tenant
leaves the farm, according to the table below:
(34)
CONSERVATION PRACTICE
MEASURE, OR OTHER
IMPROVEMENT

(35)
DATE TO BE
COMPLETED

(36)
ESTIMATED
COST
$

(37)
PERCENT TO BE FURNISHED BY LANDLORD (L) AND BY TENANT
(T)

MATERIALS %

LABOR %

MACHINERY %

(38)
VALUE PLACED ON
TENANT'S
CONTRIBUTION
$

(39)
RATE OF ANNUAL
DEPRECIATION
%

18. Additional agreements relative to conservation and improvements:
(40) ___________________________________________________________________________________________________________________

(42)
Acres At Beginning

(43
Rate Per Acre

FSA-1940-51 (06-06-02)

Page 5 of 7

21. Removable Improvements. Minor improvements of a temporary or removable nature, not provided for in item 17 of this section, which do
not mar the condition or appearance of the farm may be made by the tenant at the tenant's own expense. The tenant may at any time this lease is in
effect, or within a reasonable time thereafter, remove such improvements, provided the tenant leaves in good condition that part of the farm from
which they are removed.
22. Compensation for damages. When the tenant leaves the farm the tenant will pay the landlord reasonable compensation for any damage to the
farm for which the tenant is responsible, except ordinary wear and depreciation and damages beyond the tenant's control.
D. SHARING COSTS AND RETURNS. All costs and returns shall be divided between landlord and tenant as provided below, unless otherwise
specifically stated elsewhere in this lease.
1. Rental rates. The tenant agrees to pay as rent the shares or quantities of crops and cash as indicated below:
(44)
CROPS OR IMPROVEMENTS

(45)
ACRES

(46)
SHARE RENT
%

(47)
CASH RENT
$

(48)
PLACE OF SALE OR DELIVERY

(49)
DATE OF SALE,
DELIVERY, OR PAYMENT

FARM BUILDING
DWELLING

2. Additional agreements in regard to rental rates:
(50) __________________________________________________________________________________________________________________

______________________________________________________________________________________________________________________
3. Expenses. Expenses, including investments in personal property, shall be supplied by the tenant, except as indicated in Paragraph C and except
as follows:
(51)
INVESTMENTS IN
PERSONAL PROPERTY

(52)
FURNISHED BY
LANDLORD
$

(53)
EXPENSES

(54)
FURNISHED BY
LANDLORD
$

(55)
EXPENSES

TRACTOR

Labor

Liming Material

MACHINERY & EQUIPMENT

Maintenance - Buildings

Fertilizer

Maintenance - Fences
Machine Repairs

Seed

Fuel - Tractor
Fuel - Truck

LIVESTOCK

Fuel - Other

Electricity

Custom Work and Hauling

Telephone

Weed Control Material

Insurance-Buildings

Insecticides

Insurance-Crops

Feed Purchased or Supplied

Taxes-Real Estate

Livestock Expenses

Taxes-Personal

(56)
FURNISHED BY
LANDLORD
$

FSA-1940-51 (06-06-02)

Page 6 of 7

4. Additional agreements relative to expenses:
(57) ____________________________________________________________________________________________________________________

at least (63) _______ months before expiration of this lease or any renewal.
2. Continuous occupancy. - The farm will be possessed and occupied continuously during the term of the lease by the tenant of the tenant's
agent.
3. Surrender of possession. - The tenant agrees to surrender possession and occupancy of the premises peaceably at the termination of the lease.
4. Review of lease. - A request for general review of the lease may be made at least (64) __________ days prior to the final date for giving notice
to terminate this lease. Amendments and alterations to this lease shall be made in writing.
F. MISCELLANEOUS PROVISIONS
1. No partnership created. - This lease shall not be deemed to give rise to a partnership relation, and neither party shall have authority to
obligate the other without written consent, except as specifically provided in this lease.
2. Government programs. - The farm will be operated in compliance with Government programs as follows:
(65) ___________________________________________________________________________________________________________________

_______________________________________________________________________________________________________________________
_______________________________________________________________________________________________________________________
_______________________________________________________________________________________________________________________
3. Debts and accidents. - Each party agrees that the other party shall in no way be responsible for the debts of, or liabilities for accidents or
damages caused by, the other party.
4. Willful neglect. - Willful neglect, failure, or refusal by either party to carry out any substantial provision of this lease shall give the other party
the benefits of any proceedings provided by law.
5. Farm records. - The tenant shall keep a complete financial and production record of the entire farm business, which shall include a complete
inventory of all property used in the farm business and a complete record of all purchases and sales related to the farm business. Such records are to
be kept on mutually acceptable forms and shall be of such nature as to be usable by landlord and tenant in studying the farm business, in making
financial and property settlements, and for purposes related to social security and income tax. Such records shall include appropriate sales statements,
receipts, checks, and similar evidence and shall be accessible to the landlord at all times. Accounts between the two parties shall be settled on or about
(66) _________________.

6. Arbitration of differences. - Any differences between the parties as to their several rights and obligations under this lease that are not settled
by mutual agreement after thorough discussion, shall be submitted for arbitration to a committee of three disinterested persons, one selected by each
party hereto and the third by the two thus selected; and the committee's decision shall be accepted by both parties.
7. Landlord subordination. - In consideration of loan(s) to be made by the Farm Service Agency (FSA) the landlord hereby subordinates in
favor of the FSA any lien the landlord now has or may acquire in or on: (a) the livestock and farm equipment purchased or refinanced by the tenant
with FSA loan(s); (b) the crops, livestock increase and livestock products of the tenant (except a lien on such property produced in any year for that
year's rent); (c) any other livestock and farm equipment owned by the tenant to the extent such lien is to secure advances to be made or supplies to be
furnished by the landlord.
8. Additional agreements:
(67) ____________________________________________________________________________________________________________________

FSA-1940-51 (06-06-02)

Page 7 of 7

F. IN WITNESS WHEREOF, the parties have signed this lease on the date first above written.
(69) __________________________________________[SEAL]
(Landlord)
Witness:
(68)__________________________________________
__________________________________________[SEAL]
___________________________________________

(70) __________________________________________[SEAL]
(Tenant)

(Acknowledgment in appropriate form to be attached).

NOTE:

The following statements are made in accordance with Privacy Act of 1974 (5 USC 552a): the Farm Service Agency (FSA) is authorized by
the Consolidation Farm and Rural Development Act, (7 U.S.C. 1921 et seq.), and the regulations promulgated thereunder, to solicit the
information requested on this form. The information requested is necessary for FSA to determine eligibility for credit or other financial
assistance, service your loan, and conduct statistical analyses. Supplied information may be furnished to other Department of Agriculture
agencies, the Department of the Treasury, Department of Justice or other law enforcement agencies, the Department of Defense, the
Department of Housing and Urban Development, the Department of Labor, the United States Postal Service, or other Federal, State, or
local agencies as required or permitted by law. In addition, information may be referred to interested parties under the Freedom of
Information Act (FOIA), to financial consultants, advisors, lending institutions, packagers, agents, and private or commercial credit sources,
to collection or servicing contractors, to credit reporting agencies, to private attorneys under contract with FSA or the Department of
Justice, to business firms in the trade area that buy chattel or crops or sell them for commission, to Members of Congress or Congressional
staff members, or to courts or adjudicative bodies. Disclosure of the information requested is voluntary. However, failure to disclose
information requested, including your Social Security Number of Federal Tax Identification Number, may result in a delay in the processing
of an application or its rejection.

U.S. DEPARTMENT OF AGRICULTURE

Prepared and Issued by

_____________________________

This form contains suggested provisions for a
livestock-share farm lease. Whether particular
provisions should be included or modified in your
lease depends on the agreements between the
parties and whether the provisions are appropriate
under the laws of your State. Spaces are provided
for writing in particular details or special
arrangements that a landlord or a tenant may want.
By using the Annual Supplement to Farm Lease
(Form FSA 1940-56). Details of the lease can be
changed from year to year without preparing a new
lease.

USE OF THE FARM LEASE FORM

_______________________________
(Tenant)

FARM LEASE
Between

_____________________________
(Landlord)

According to the Paperwork Reduction Act of 1995, an agency may not conduct or sponsor, and a person is not required to respond to, a
collection of information unless it displays a valid OMB control number. The valid OMB control number for this information collection is
0560-0162. The time required to complete this information collection is estimated to average 30 minutes per response, including the time
for reviewing instructions, searching existing data sources, gathering and maintaining the data needed, and completing and reviewing the
collection of information. RETURN THIS COMPLETED FORM TO YOUR COUNTY FSA OFFICE.

File Type	application/pdf
File Modified	2007-03-19
File Created	2002-06-10