1940-55 Livestock Share Lease - LandLord

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

FSA1940-0055

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

OMB: 0560-0162

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FSA-1940-55

Form Approved - OMB No. 0560-0162

U.S. DEPARTMENT OF AGRICULTURE
Farm Service Agency

(06-06-02)

LIVESTOCK-SHARE 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. Right of entry. The landlord reserves, the right to use the following 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. 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.
3. 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.
4. 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 either party shall
have the option to give written notice of termination effective at the end of the lease year in which death occurs.
5. 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.
6. Rent additional land. The tenant will not, unless written consent of the landlord is obtained first, farm more than (13 ) ____________ acres
of additional land and will not enter into any other business, occupation, or sideline.
7. Additional agreements regarding property rights:
(14)___________________________________________________________________________________________________________________

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.

FSA-1940-55 (06-06-02)

Page 2 of 7

B. LAND USE AND LIVESTOCK PRODUCTION
1. Land use. The agreed-upon use of the land is outlined in the following table:
(15)
USE OF LAND

(16)
ACRES

(17)
FIELDS

(18)
SEED VARIETY

(19)
KIND OF SEED

(20)
AMOUNT OF FERTILIZER PER ACRE

FOR FAMILY LIVING
WOODLAND
FARMSTEAD AND LOTS
TOTALS (21)

2. Livestock production. The tenant may engage in the following production of livestock:
(22)
KIND OF LIVESTOCK

(23)
NUMBER

(24)
BREED

(25)
SHARE OWNED
BY LANDLORD

(26)
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 two 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, livestock and/or
livestock products:
(27) ________________________________________________________________________________________________________________

FSA-1940-55 (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:
(30) __________________________________________________________________________________________________________________

______________________________________________________________________________________________________________________
______________________________________________________________________________________________________________________
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) plant legumes on land not known to be thoroughly inoculated
without first inoculating the seed.
4. Livestock practices. The tenant will care for the livestock so as to maximize production, will do the breeding, feeding, and watering at the
proper time and in the proper manner, and 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:
(31) __________________________________________________________________________________________________________________

FSA-1940-55 (06-06-02)

Page 4 of 7

13. Purchase of materials. The tenant may buy, without further authorization, materials for normal maintenance and repairs in a total amount not
to exceed (34) $____________________ within each year, and the landlord will credit or reimburse the tenant for such expenditures, as follows:
(35) ___________________________________________________________________________________________________________________

_______________________________________________________________________________________________________________________
_______________________________________________________________________________________________________________________
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:
(36)
CONSERVATION
PRACTICE
MEASURE, OR OTHER
IMPROVEMENT

(37)
DATE TO BE
COMPLETED
(MM-DD-YYYY)

(38)
ESTIMATED
COST
$

(39)
PERCENT TO BE FURNISHED BY LANDLORD (L) AND BY
TENANT (T)

MATERIALS %

LABOR %

MACHINERY %

(41)
(40)
VALUE PLACED ON RATE OF ANNUAL
DEPRECIATION
TENANT'S
%
CONTRIBUTION
$

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

(43)
PREPARED OR SEEDED

(44)
ACRES AT BEGINNING

(45)
RATE PER ACRE

(46)
PREPARED OR SEEDED

(47)
ACRES AT BEGINNING

(48)
RATE PER ACRE

FSA-1940-55 (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 that part of the farm from which they are removed is left in good
condition.
22. 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 rent the shares or quantities of crops and livestock as indicated below:

SHARE OR AMOUNT PAID AS RENT

(49)
CROPS, LIVESTOCK, &
IMPROVEMENTS

(50)
Crops or
Cash

(51)
Offspring or
Increase in
Livestock Herd

(52)
Livestock
Sales

(53)
Sales of Livestock
Products

(54)
Place of Sale or Delivery

(55)
Date of Sale
Delivery or Payment
(MM-DD-YYYY)

DWELLING

2. Additional agreements in regard to rental rates:
(56) _________________________________________________________________________________________________________________

_____________________________________________________________________________________________________________________
3. Expenses. Expenses, including investments in personal property, shall be supplied by the landlord and tenant, except as indicated in
Item C:
(57)
INVESTMENTS IN
PERSONAL PROPERTY

(60) FURNISHED BY

(58) FURNISHED BY
Landlord

(59)
EXPENSES

Tenant

Landlord

(61)
EXPENSES

Tenant

Tractor

Labor

Liming Material

Workstock

Maintenance-Buildings

Fertilizer

Machinery and Equipment

Maintenance-Fences
Machine Repairs
Fuel-Tractor

Seed

Fuel-Truck
Fuel-Other
Custom Work and Hauling
Electricity
Telephone

Insurance-Buildings

Veterinary Fees

Insurance-Crops

Breeding Fees
Beef Cattle

Taxes-Real Estate

Feeder Cattle

Weed Control Material

Hogs

Insecticides

Sheep
Dairy

Feed Purchased or Supplied

Taxes-Personal

(62) FURNISHED BY
Landlord

Tenant

FSA-1940-55 (06-06-02)

Page 6 of 7

4. Additional agreements relative to expenses:
(63) _________________________________________________________________________________________________________________

given by either party to the other at least (69) _______ months before expiration of this lease or any renewal.
2. Continuous occupancy. - The tenant agrees that the tenant or the tenant's agent will possess and occupy the farm continuously during the
term of the lease.
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 (70) __________ 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:
(71) _________________________________________________________________________________________________________________

_____________________________________________________________________________________________________________________
_____________________________________________________________________________________________________________________
_____________________________________________________________________________________________________________________
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 agrees to keep financial and production records of all income and expenses of mutual interest which records
shall be accessible to the landlord at all times, and to furnish an annual report to the landlord on or before the following date (72)______________.
Accounts between the two parties shall be settled on or about (73) _______________________.
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:
(74) _________________________________________________________________________________________________________________

FSA-1940-55 (06-06-02)

Page 7 of 7

F. IN WITNESS WHEREOF, the parties have signed this lease on the date first above written.
(76) _____________________________________________[SEAL]
(Landlord)
Witnesses:
(75)_____________________________________________
_____________________________________________[SEAL]
_____________________________________________

(77) ______________________________________________[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
crop-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