12 05b MATERIAL PARTICIPATION FARM LEASE

• Jurisdiction: Arkansas
• Library: Arkansas Form Book - Complete (2023 Ed.)

12-05B MATERIAL PARTICIPATION FARM LEASE

MATERIAL PARTICIPATION FARM LEASE

THIS AGREEMENT ("Lease") is made and entered into on [date], but it shall be effective the [effective date], by and between [lessor name], whose mailing address is [owner address], hereinafter referred to as "Lessor," and [lessee name], the mailing address of which is [lessor address], hereinafter referred to as "Lessee,"

WITNESSETH:

(1) Leased Premises: Lessor, for and in consideration of the payment of rent as set forth hereinbelow in Paragraph 3, and other good and valuable consideration, hereby leases to Lessee, and Lessee hereby leases from Lessor, for agricultural purposes only, certain farmland ("Leased Premises") located in [county] County, Arkansas, described as follows:

See Legal Description Attached as Exhibit A

together with all permanently-installed improvements located thereon, including, without limitation, tenant houses, barns, tractor sheds, fences, irrigation equipment, ditches, levees, pumps, water lines, electric and gas transmission line and culverts. The Leased Premises is also identified as [county] County FSA Farm #[number] and according to FSA records has [number of effective cropland acres as found on FSA EZ-156] cropland acres.

Lessor expressly reserves all hunting and fishing right and privileges in and on the Leased Premises, and any hunting or fishing done on the Leased Premises by the Lessee or by a third person to whom Lessee gave permission shall constitute a breach of this Lease and the Lease may be terminated immediately by the Lessor.

(2) Term of Lease: The term of this lease shall be for [number of years] beginning on [date] and ending on [date].

(3) Rent: The rent for the Leased Premises shall be [number]% of all crops grown on the Leased Premises and [number]% of all farm program benefits paid on the Leased Premises by the Farm Service Agency (FSA), provided Lessor is eligible to receive such farm program benefits.

(4) Production: The Lessee agrees to properly plant, cultivate, grow and harvest each year during the term hereof crops on all of the tillable land herein let to it unless the parties agree otherwise. The Lessee specifically agrees that each year during the term hereof it will plant, cultivate, grow and harvest the total number of Effective DCP Cropland acres as determined by the FSA and that appears on FSA form FSA-156EZ for such FSA farm number. If, under any United States Department of Agriculture program or plan to which the Lessor and the Lessee have agreed in writing, any of the Leased Premises are to not be planted in any agriculture crop, then to that extent Lessee shall not be required to plant, cultivate, grow and harvest agricultural crops each year on all of the Leased Premises. In the fall of the final year of this Lease on any and all parts of the Leased Premises on which there are not growing crops, or on which the crop has been harvested, the Lessor, its agent or another tenant of the Lessor shall have the right to use such parts of the leased premises for any and all agriculture purposes. Under such circumstances, the Lessee shall do nothing to interfere with or to make difficult such agriculture purposes or the use thereof by the Lessor, its agent or its other tenant. The Lessee is not to plant any wheat during the fall of the last year of this Lease, unless written permission is received from Lessor.

The Lessor shall have the right during the term of this Lease to consult with Lessee as to the variety and kinds of crop to be planted and the location as to on which tract such types and varieties of crops shall be planted. The Lessee shall consult with the Lessor concerning the application of fertilizers, insecticides and herbicides, and the parties shall mutually agree upon the types and quantities to be applied. After consulting with and gaining the approval of Lessor, the Lessee shall purchase and apply the types and amounts of fertilizer that the Lessor had approved.

Although the parties intend that the Lessor shall actively participate in the management decisions and that the Lessor, from time to time, may order assistance and labor, the Lessor shall incur no liability for [his/her] acts or failure to act with respect to the management of the Leased Premises. Decisions and farming practices different from those being observed by the Lessee at any point in time shall be implemented and adopted as the parties shall mutually agree upon.

(5) Lessor's Shared Costs of Production: Lessor shall pay a percentage of the cost of the following inputs to crop production as listed:

(a) all fertilizers applied to any crop on the Leased Premises, [number]%;
(b) all herbicides, insecticides, and fungicides applied to any crop on the Leased Premises, [number]%;
(c) all seed planted on the Leased Premises, [number]%;
(d) surveying for rice levees, [number]%;
(e) aerial applications used to apply fertilizers and chemicals, [number]%; and
(f) lime applications made to the Leased Premises, [number]%.

(6) Right of Entry for Inspection: The Lessor shall have the right, either in person or by agent or attorney, to enter upon the Leased Premises for the purpose of inspecting the same and the crops growing thereon, and for the purpose of doing any other lawful acts on the Leased Premises that the Lessor may be authorized to do under this Lease or that may be necessary to protect the Lessor's interest in the Leased Premises or under this Lease or which were done at the instance or request of the Lessee. Lessor shall have the right to hire and employ experts or advisors to make soil samples or otherwise view and review the Leased Premises and crops for the purpose of advising the Lessor as to what changes in farming practices might be observed.

(7) Taxes and Special Assessments: It is agreed that, during the term hereof, all taxes...