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

Instructions For FSA-1940-56

ANNUAL SUPPLEMENT TO FARM LEASE

This form is used by tenant borrowers to supplement an existing lease. It is used to record new agreements and continue the lease in full force for the year shown.

Copies should be furnished to the tenant and landlord.

Tenant and landlord complete items 1 through 41.

Items 1-41

Fld Name / Item No.	Instruction
1 For Lease Year Beginning	Enter the date the lease will begin.
2 Landlord	Enter the name of the landlord.
3 Tenant	Enter the name of the tenant
4 Date	Enter the date the form is signed by the tenant and landlord.
5 Use of Land	Enter the use of the land. Example: Row Crop-Corn
6 Acres	Enter the number of acres that will be used for the purpose in item 5.
7 Fields	Enter the identifying numbers of the fields that will be used for the purpose in item 5.
8 Seed Variety	Enter the seed that will be planted for the purpose in item 5.
9 Kind and Amount of Fertilizer per Acre	Enter the kind and amount of fertilizer that will be used on the crop described in item 5.
10 Additional Notations	Enter any additional items agreed to by the tenant and landlord for the crop described in item 5.
11 Total Acres	Enter the total acres that will be leased.
12 Kind of Livestock	Enter the kind of livestock that will be produced by the tenant.
13 Number	Enter the number of livestock described in item 12.
14 Breed	Enter the breed of livestock described in item 12.
15 Special Health, Sanitation, or Feeding Practice	Enter any special health, sanitation, or feeding practices agreed to for the livestock in item 12.
16 Conservation Practice, Measure, or Other Improvement	Enter any conservation practices, measures, or other improvements that have been agreed to by the tenant and the landlord.
17 Date to be Completed	Enter the date the action in item 16 is to be completed.
18 Estimated Cost	Enter the estimated cost of the action in item 16.
19 Percent to be Furnished by Landlord and Tenant	Enter percentage of materials, labor, and machinery that will be furnished by the landlord (L) and tenant (T) for the action in item16.
20 Value Placed on Tenant’s Contribution (Dollars)	Enter the agreed on value of the tenant’s contribution to the action in item 16. The landlord will reimburse the tenant when the practice, measure, or improvement is completed, or the tenant will be compensated for its unexhausted value when leaving the farm.
21 Rate of Annual Depreciation (Percent)	Enter the rate of annual depreciation on the tenant’s contribution to the action in item 16. This is used to determine the unexhausted value of the action in item 16. The tenant will be compensated for the unexhausted value when leaving the farm.
22 Additional Agreements	Enter any additional agreements made by the landlord and tenant.
23 Crops, Livestock, and Improvements	Enter the crop, livestock, or improvements that will be used to pay the rent.
24 Crops or Cash	Enter the crop share percentage or cash amount that will be used to pay the rent.
25 Offspring or Increase in Livestock	Enter the share percentage or cash amount from the increase in livestock that will be used to pay the rent.
26 Livestock Sales	Enter the share percentage or cash amount from livestock sales that will be used to pay the rent.
27 Sales of Livestock Products	Enter the share percentage or cash amount from livestock products that will be used to pay the rent.
28 Place of Sale or Delivery	Enter the place the product entered in item 23 will be sold or delivered.
29 Date of Sale, Delivery, or Payment	Enter the date the product entered in item 23 will be sold or delivered.
30 Additional Agreements in Regard to Rental Rates	Enter any additional agreements between the tenant and the landlord with regard to rental rates.
31 Investments in Personal Property	Enter the property that will be furnished by the landlord or tenant, and state the party responsible for supplying this item.
32 and 33 Expenses	Enter the expenses that will be incurred for annual operating by the landlord or tenant, and state the party responsible for the expense.
34 Additional Agreements Relative to Operating Expenses	Enter any additional agreements between the tenant and the landlord with regard to annual operating expenses.
35 Government Agricultural Programs	Enter any Government agricultural programs that will be used in the operation.
36 Additional Agreements	Enter any additional agreements between the tenant and landlord.
37 Witnesses	Any witnesses to the execution of this document should sign here.
38 Day	Enter the day the agreement is signed.
39 Month and Year	Enter the month and year the agreement is signed.
40 Landlord	Enter the landlord's signature.
41 Tenant	Enter the tenant's signature.

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