1940-53 Cash Lease - Landlord

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FSA-1940-53
(06-11-02)

Form Approved - OMB No. 0560-0162

Position 1

This form is available electronically.

U.S. DEPARTMENT OF AGRICULTURE
Farm Service Agency

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

day of (2)

THIS LEASE is entered into this (1)

between (4)

, landlord, of (5)

, 20 (3)

(Address of Landlord)

, tenant, of (7)

and (6)

(Address of Tenant)

A. PROPERTY RIGHTS. The landlord hereby leases to the tenant, to occupy and use for agricultural and related purposes, the followingdescribed property, hereinafter referred to as the "farm," located in (8)
County, State of (9)

, and commonly known as the (10)

farm: (11)

and consisting of (12)
except as specified below:

acres, more or less, together with all buildings and improvements thereon and all rights thereto

1. 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.
2. 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.
3. 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 the 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.
4. 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.
5. Additional agreements regarding property rights: (13)

.

The U.S. Department of Agriculture (USDA) prohibits discrimination in all its programs and activities on the basis of race, color, national origin, gender, religion, age, disability,
political beliefs, sexual orientation, and marital or family status. (Not all prohibited bases apply to all programs.) Persons with disabilities who require alternative means for
communication of program information (Braille, large print, audiotape, etc.) should contact USDA's TARGET Center at (202) 720-2600 (voice and TDD). To file a complaint
of discrimination, write USDA, Director, Office of Civil Rights, Room 326-W, Whitten Building, 1400 Independence Avenue, SW, Washington, D.C. 20250-9410 or call (202)
720-5964 (voice or TDD). USDA is an equal opportunity provider and employer.

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FSA-1940-53 (06-11-02)

Page 2 of 7

B. LAND USE AND LIVESTOCK PRODUCTION.
1. Land use and kind of livestock. Except when mutually agreed otherwise, the land use and cropping plan shall be as follows and the
numbers of each kind of livestock shall not exceed those shown in the following table:
LAND USE AND LIVESTOCK PRODUCTION TABLE
(14)
USE OF LAND

(15)
ACRES

(16)
FIELDS

(17)
KIND OF LIVESTOCK

(18)
MAXIMUM NUMBERS

(19) TOTAL

2. Acres and numbers. The acres of crops and the fields on which grown and the 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.
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 damage 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 tenant's 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) plant legumes on land not known to be
thoroughly inoculated without first inoculating the seed.
4. 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: (20)

5. Pasturing. The tenant will prevent tramping of fields by stock and rooting by hogs when injury to the farm will be done.
6. Waste. The tenant will not commit waste on, or damage to, the farm and will use due care to prevent others from so doing.
7. Fire protection. The tenant will not, without written consent of the landlord, house automobiles, motortrucks, or tractors in barns, or
otherwise violate restrictions in the landlord's insurance policy which restrictions the landlord shall make known to the tenant.
8. Replace losses. The landlord will replace or repair as promptly as possible the dwelling or any other building that may be destroyed or
damaged by fire, flood, or other cause beyond the control of the tenant or make rental adjustments in lieu of replacements.
9. Noxious weeds. The tenant will use diligence to prevent noxious weeds from going to seed on the farm and will destroy the same, and will
keep the weeds and grass cut or destroyed on the fields, farmstead, roadside, and fence rows. Treatment of weed infestation and cost thereof,
shall be handled as follows: (21)

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FSA-1940-53 (06-11-02)

10. Maintenance of improvements. The tenant will keep the building, fences, and other improvements on the farm in as good repair and
condition as they are when the tenant takes possession, and in as good repair and condition as they may be put during the term of the lease,
ordinary wear and tear, loss by fire, or unavoidable depreciation or destruction excepted.
11. Materials and labor. The landlord will furnish materials and the tenant will perform labor for normal maintenance and repairs, except
that skilled labor which the tenant is unable to perform satisfactorily will be furnished by the landlord. Additional agreements regarding
materials and labor: (22)

12. Purchase of materials. The tenant may buy, without further authorization, materials for normal maintenance and repairs in a total amount
not to exceed (23) $

within each year, and the landlord will credit or reimburse the tenant for such expenditures, as

follows: (24)

13. 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.
14. 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.
15. 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.
16. 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 completing 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 will be compensated for its unexhausted
value when the tenant leaves the farm, according to the table below:
COMPENSATION FOR IMPROVEMENTS TABLE
(25)
CONSERVATION PRACTICE
MEASURE, OR OTHER
IMPROVEMENT

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(26)
DATE TO BE
COMPLETED
(MM-DD-YYYY)

(28)
PERCENT TO BE FURNISHED BY
LANDLORD (L) AND BY TENANT (T)

(27)
ESTIMATED
COST
$

LABOR %

MATERIALS %
L

T

L

T

(30)
(29)
RATE OF
VALUE PLACED ON
ANNUAL
TENANT'S
MACHINERY %
DEPRECIATION
CONTRIBUTION
%
L
$
T

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FSA-1940-53 (06-11-02)

Page 4 of 7

17. Additional agreements relative to conservation and improvements:
(31)

18. Review of conservation program. A new schedule covering conservation practices and improvements will be prepared each year on an
appropriate form which will become a part of this lease when signed by the two parties.
19. Preparing or seeding land. When the tenant leaves the farm, if the total acreages of prepared or seeded land are greater than at the
beginning of the tenancy, the tenant will be compensated by the landlord on the basis of the value of such excess acreages. If such total
acreages are less than at the beginning of the tenancy, the tenant will compensate the landlord on the basis of the value of such
deficiency, provided that the deficiency is not due to drought, flood, or other causes beyond the control of the tenant. The acreages at
the beginning of this tenancy and the basis of payment are as follows:
PREPARING OR SEEDING LAND TABLE
(32)
PREPARED OR SEEDED

(33)
ACRES AT
BEGINNING

(34)

(35)

RATE PER ACRE

PREPARED OR SEEDED

(36)
ACRES AT
BEGINNING

(37)
RATE PER ACRE

20. Removable Improvements. Minor improvements of a temporary or removable nature, not provided for in Item 16 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 that part of the farm from which they
are removed is left in good condition.
21. Compensation for damages. When the tenant leaves the farm the tenant will pay the landlord reasonable compensation for any damages
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 cash rent the amount as calculated below in either method 1 or 2 as completed.
RENTAL RATES
METHOD 2 - FLEXIBLE CASH RENT

METHOD 1 - STRAIGHT CASH RENT
(38)
KIND OF LAND
INTERTILLED CROPS

(39)
ACRES

(40)
RATE

(41)
AMOUNT

(42)
COMMODITY
CORN
COTTON

SMALL GRAINS
HAY

TOBACCO

PASTURE

WHEAT

FARM BUILDINGS

HOGS

DWELLING

BEEF
MILK

WOODLAND
FARMSTEAD AND LOTS
ENTIRE FARM

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(43)
QUALITY

(44)
QUANTITY

(45)
PRICE

(46)
AMOUNT

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FSA-1940-53 (06-11-02)
2. Variations for price (for method 2). The prices to be used in Column (45) will be determined as follows: (47)

3. Variations for production conditions. The total amount of rent for the entire farm as shown in either Column 4 or as calculated for
Column 9 shall be adjusted for any year in which the yield of (48)
as reported by the State Crop Reporting
Service is (49)
percent above or below the county average yield for the previous (50)
years, as follows:
(51)

4. Rental payment. The annual rental due shall be paid as follows: (52) $
(54) $

on (55)

on (53)

and

, and the payments shall be made at (56)

5. Additional agreements in regard to rental rates:
(57)

6. Expenses: Expenses shall be supplied by the tenant except as included in Section C and except as follows:
EXPENSES
(58)
EXPENSES

(59)
FURNISHED BY
LANDLORD
$

(60)
EXPENSES

CROP EXPENSES

LABOR

(61)
FURNISHED BY
LANDLORD
$

(62)
EXPENSES

(63)
FURNISHED BY
LANDLORD
$

ELECTRICITY
TELEPHONE

MAINTENANCE-BUILDINGS
SEED

MAINTENANCE-FENCES

INSURANCE--BUILDINGS
INSURANCE-CROPS

MACHINE REPAIRS
FUEL-TRACTOR

INSECTICIDES

FUEL-TRUCK

WEED CONTROL
MATERIAL

FUEL-OTHER

LIMING MATERIAL

TAXES-REAL ESTATE

CUSTOM WORK AND
HAULING
FEED PURCHASED OR
SUPPLIED

FERTILIZER

TAXES -PERSONAL

LIVESTOCK EXPENSES

7. Record of expenses. The tenant will keep a record of expenses furnished by the landlord, and settlement will be made by mutual agreement
or at the time that final rent payment is due.
8. Additional agreements relative to expenses: (64)

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FSA-1940-53 (06-11-02)

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E. TERM OF LEASE
1. Term. The term of this lease shall be (65)_________ year(s) from (66) _____________________________, 20 (67) _____ to
(68) ________________________ , 20 (69)_____ and this lease shall continue in effect from year to year thereafter until written notice of
termination is given by either party to the other at least (70) _______ 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 or 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 (71) _____________ 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:
(72)

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. 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.
6. 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.
7. Additional agreements:
(73)

.

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FSA-1940-53 (06-11-02)

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IN WITNESS WHEREOF, the parties have signed this lease on the date first above written.

[SEAL]

(75)

Witness: (74)
[SEAL]
[SEAL]

(76)
-

NOTE: The following statements are made in accordance with the Privacy Act of 1974 (5 USC 552a): the Farm Service Agency (FSA) is authorized
by the Consolidated Farm and Rural Development Act, as amended (7 USC 1921 et seq., or other Acts, and the regulations promulgated
thereunder, to solicit the information requested on its application forms. 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 Internal Revenue Service, the 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 certain items of information requested, including your Social Security Number or Federal Tax identification Number, may result in a
delay in the processing of an application or its rejection.
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.

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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)

(Acknowledgment in appropriate form to be attached).