Crop Share Farm Lease

CROP SHARE FARM LEASE

[This form may be used either for an entire farm, or for field rental agreements. Special care should be taken in field rental agreements to describe exactly what real estate is included.]

Section I. Date, Contracting Parties, Description of Property, and Terms of Lease

1. This lease is made this day of 20, by and between , hereinafter called the Landlord, and , hereinafter called the Tenant.

2. Landlord’s address for mailing of notices, rent payments, etc., is:

Tenant’s address for mailing of notices, etc., is:

3. The Landlord, hereby leases to the Tenant, to use for agricultural purposes only, the [name of farm] farm, or the below-described portion thereof, containing acres, located in County, State of , described as follows:

with all improvements thereon except

4. This lease agreement shall become effective on the day of , 20 and shall terminate on the day of , 20. The Tenant agrees to contact the Landlord days prior to the termination date to consider re-negotiating for the following year the amount of rent and other terms and conditions of this lease.

Section II. Land Use and Cropping Program

1. Approximately acres of the above-described leasehold are to be cultivated, with areas and/or acreage to remain uncultivated and/or not to be grazed, described as follows (if applicable):

2. Special considerations involving crop types and/or areas for specific crops, participation in/compliance with government programs, and other special considerations regarding land use and cropping are as follows:

3. Participation in annual government programs shall be as set out above. Program payments shall be divided either in the same proportion as the two parties divide the crop to which payments are related, or as follows:

4. Tenant shall not plow the following permanent pasture areas:

Section III. Division of Costs and Returns

1. This lease shall be a crop share lease in which both parties furnish specified production inputs and costs and share the resulting production as indicated in items 2) and 3) immediately below, Table 1 and Sections IV and V.

2. Landlord agrees to furnish the land and fixed improvements referred to in Section I.

3. Tenant agrees to furnish all labor, power, machinery and movable equipment and all related operation and maintenance expenses to operate the farm except as indicated in Table 1, and as except as follows:

4. This lease is not intended to be, nor to give rise to, a partnership between the parties.

Table 1. Landlord's and Tenant's Shares of Crops and Crop Expenses (Indicate % and/or amount).

List crop type and percent (%) share for Landlord and percent share for Tenant.

[crop]: Landlord % = Tenant % =

[crop]: Landlord % = Tenant % =

[crop]: Landlord % = Tenant % =

[crop]: Landlord % = Tenant % =

[crop]: Landlord % = Tenant % =

List item of expense and percent or amount to be covered by Landlord and by Tenant.

ITEM         LANDLORD         TENANT

[Fertilizer]:

[Fertilizer application]:

[Herbicides]:

[Herbicide application]:

[Insecticide]:

[Insecticide application]:

[Seed]:

[Planting]:

[Lime]:

[Harvesting]:

[Dryer fuel, power]:

[Dryer, overhead]:

[Hauling to bin]:

[Field to Market]:

[Other]:

Section IV. The Landlord Agrees to:

1. Furnish the land and the fixed improvements referred to in Section I.

2. Pay all taxes and the assessments against the real estate, all taxes on the Landlord's personal property on the farm, and premiums for the insurance carried on the farm buildings.

3. Other responsibilities of the Landlord:

Section V. The Tenant Agrees to:

[strike through unwanted provisions]

1. Follow the farming practices that are generally recommended for and that are best adapted to this type of farm and for this locality unless other practices are agreed upon.

2. Furnish all labor, power, machinery, and movable equipment and all related operation and maintenance expenses to operate the leased farmland except as follows:

3. Furnish all labor for minor repair and the minor improvement of buildings, fences, and drains with the material to be furnished by the Landlord. The buildings, fences, and other improvements on the farm are to be kept in as good repair and condition as they are at the beginning of the lease, or in as good repair and condition as they may be put in by the Landlord during the term of the lease; ordinary wear and depreciation excepted.

4. Haul to the farm, except where other arrangements are agreed to with the Landlord, any material provided by the Landlord for the minor repair or minor improvement of buildings, fences, and drains.

5. Cut the weeds in lots, fence rows, and along rows whenever necessary to prevent reseeding. Mow permanent pastures at least once each year when it is most effective to destroy weeds and other undesirable plants.

6. Keep livestock out of the fields when the soil is soft, and protect sod crops, especially new seedings, from too close grazing that might impair the following year's crop.

7. Follow FSA (Farm Services Agency) recommendations and fulfill all other requirements necessary to maintain the rights of current and future operators of this farm to participate in federal farm programs. Planted acreages of crops shall be reported as required by FSA.

8. Store and use pesticides, fertilizers, and other chemicals, and dispose of containers in accordance with state and federal regulations and recommendations. Furnish the Landlord a written, field by field, record of the amount, kinds, and dates of applications of pesticides and fertilizers.

9. Not store motor vehicles, tractors, fuel, and chemicals on the farm in violation of restrictions in the Landlord's insurance policies.

10. Apply fertilizer as follows:

11. Neither assign this lease to any person or persons nor sublet any part of the real estate for any purpose without the written consent of the Landlord.

12. Yield peaceable possession of the farm at the termination of this lease.

Section VI. Marketing, Billing, Management and Miscellaneous Provisions.

1. Separate checks to the tenant and landlord shall be issued by the purchaser of co-mingled farm production unless otherwise specified below:

2. Marketing decisions regarding jointly owned or co-mingled production shall be made by mutual agreement. If agreement cannot be reached, each party shall make decisions on their approximate amount of production.

3. Input suppliers shall be instructed to issue separate bills to the tenant and landlord for their respective shares of shared production expenses except as follows:

4. Privilege rent of $ per year shall be paid to the landlord on the day of , 20 for the use of:

5. The extent of participation by the landlord in the management of farm production shall be as follows:

6. The landlord shall carry general farm liability insurance coverage in the amount of $

7. The tenant shall carry general farm liability insurance coverage in the amount of $

Section VII. Rights and Privileges

1. The Landlord or anyone designated by him shall have the right of entry at any mutually convenient time to inspect the property and/or the farming methods being used.

2. The Tenant shall have the right of entry for days after the termination of the lease for the purpose of harvesting spring seeded crops. The Landlord or his designated agent shall have the right of entry to plant fall crops following harvest of the current year's crops.

3. Reimbursement shall be made to the Tenant for the portion of tenant-furnished inputs remaining unused at the beginning of the year in which no lease agreement is entered into. Said reimbursement shall be made as follows:

4. Transfer of ownership of this farm shall be subject to the provisions of this lease.

Section VIII. Enforcement of Agreements and Arbitration

1. Failure of either the Landlord or the Tenant to comply with the agreement set forth in this lease shall make him liable for damages to the other party. Any claim by either party for such damages shall be presented, in writing to the other party, at least days before the termination of this lease.

2. The provisions of this lease shall be binding on the heirs, executors, administrators, and assigns of the party or parties involved.

3. Unless a sum exceeding $ is involved, any disagreements between the Landlord and the Tenant shall be referred to a board of three disinterested persons, one of whom shall be appointed by the Landlord, one by the Tenant, and the third by the two thus appointed. The decision of these three shall be considered binding by the parties to this lease. Any cost for such arbitration shall be shared equally between the two parties of this lease.

Section IX. Other Agreements and Provisions

Section X. Signatures of the Parties in Agreement