value of manure) in case he leaves the farm before a crop is grown on such manured land; in case one crop has been grown he shall receive one-half, and in case two crops have been grown he shall receive one-fourth, of the cost of applying such

manure.

The lessee shall be reimbursed for any large amount of work or large expense put on buildings, fences, or other improvements, when failure to receive same would be a manifest injustice to said lessee.

From the reimbursement as determined above shall be subtracted $......which is agreed as the value, figured according to the above rules, of one-half of the fertilizer and lime unused in the soil, and of the cost of applying such material and applying manure still unutilized in the soil at the time the lessee takes possession of the farm. If this amount is greater than the amount the lessor should reimburse the lessee as determined above in this section, the two amounts shall be considered as balancing each other and no reimbursement shall be made.

The lessee shall present in writing his claim for all reimbursement upon the termination of this lease, and if no agreement upon the termination of this lease, and if no agreement can be reached the matter shall be submitted to three disinterested parties chosen as provided in section 21 of this lease. The decision of these arbitrators shall be final and binding upon the two parties to this contract.

Section 24. Final Settlement. Upon the termination of the lease all partnership property shall be sold at public auction or private sale, or otherwise disposed of to the best interest of the two parties.

Section 25. Accounts and Inventories. The lessee shall make a detailed inventory of all partnership property upon the first of each. ..during the continuance of this lease. In making this inventory all farm feeds shall be valued at their market price, less the approximate cost of hauling to market. Purchased prepared concentrates shall be valued at purchase price plus cost of hauling to farm.

The lessee shall keep accurate accounts of all transactions pertaining to the farm business, using for this purpose, and

for the inventories above mentioned, the Purdue Farm Record Book, unless he prefers some other system approved by the lessor.

Such inventories and accounts shall at all times be accessible to the lessor.

Section 26. Ingress and Egress. The lessor shall have the right of ingress and egress to all parts of said farm for any purpose not in conflict with the lessee's right of quiet enjoy

ment.

Section 27. In Case of Death. If lessee shall die during the term of this lease the lessor shall have the right to retake possession of said premises, to employ such labor as may be necessary to perform the work which the lessee should have performed, deduct the cost of such labor from the lessee's interest in the crops and livestock or from the proceeds to be derived from their sale, and pay the balance to the representatives of said lessee.

In witness whereof the said lessor and lessee have hereunto set their hands on the......day of.... 19...

Lessor.

Lessee.

Notes on Crop Share Farm Lease

(Notes and Lease prepared by Professors LYNN ROBERTSON and M. L. FISHER of Purdue University.

In this crop share lease the tenant is given special inducement to keep livestock. One of the greatest faults of most cropshare methods of rental is that the landlord's share of crops is sold from the farm and the tenant keeps only enough livestock to consume his own share of the crop. This is usually not enough livestock to keep up the fertility of the land or to give the tenant the most profitable farming business. Farm records in Indiana show that over a period of years the most profitable systems of farming are those in which sufficient livestock is kept to consume most of the crops produced in a

normal year. The livestock keeps up the fertility of the soil economically, utilizes roughage that cannot be marketed directly to advantage and gives more efficient use of man and horse labor by furnishing employment at times when work is not needed on crops.

On a rented farm the amount of livestock kept, and in fact, the entire farming system followed, depends largely on the lease used. This lease is therefore written with the thought of encouraging the tenant to keep considerable livestock by the following provisions:

(1) The tenant must have at least a certain acreage in legume hay and can have as much of this hay for feed as he has livestock to which to feed it economically. If he does not feed all the hay, the receipts from its sale are shared equally with the landowner.

(2) The tenant has the privilege of buying the landlord's share of corn and small grains at slightly less than market prices, for feeding on the farm, but if he does not purchase it for feeding he must deliver it to market for the landlord.

These two provisions are somewhat new in Indiana, but the value of the first of these inducements has been demonstrated by over fifty years of successful leasing on fifty-six farms in another State (see U. S. Farmers' Bulletin 437).

Although these provisions may seem to favor the tenant, the landlord who gives these inducements will benefit on account of the increase in fertility of the farm, his greater profits through increased crop yields, and his having a tenant who is satisfied in following a profitable system of farming.

This contract further differs from ordinary crop-share contracts in the following ways:

(1) Instead of having the same division of all crops, the crops are divided more nearly in proportion to the tenant's and landlord's cost of production. Thus the tenant gets a larger share of such intensive crops as potatoes, tomatoes and tobacco than of general crops because his labor expense on these crops is proportionately higher.

(2). The tenant upon leaving the farm is reimbursed for unexhausted improvements he puts on the place. In this way the tenant is encouraged to improve the farm, knowing that if

it becomes necessary for him to leave earlier than expected he will be reimbursed for such improvements.

Although this contract provides that the tenant receive fruit for family consumption before the fruit crop is divided, such a practice is merely a customary inducement that the landlord gives to secure a good tenant, and if the landlord lives near the farm and wants an equal amount of fruit for his own family there is no reason why the contract should not provide this.

It must be recognized that the provisions of this lease or any other lease, will need modifying to fit varying conditions. In a general way the landlord's furnishing of land is supposed to offset the tenant's operating expenses, the largest of which is labor. Where land is very productive and high priced, the landlord's contribution is high in proportion to the tenant's, as the tenant's expense does not increase in the same proportion as the increase in quality of land. Vice versa if the landlord furnishes poor low-priced land, his contribution is low in proportion to the tenant's, as the work in operating a poor field is nearly as great as and often greater than in operating a good field. Therefore on very good or very poor land, the division of investment, operating expenses, or share of crops should be varied to meet the conditions.

WITNESSETH, that the said lessor has leased to said lessee his farm of... .. acres situated and described as follows...

for the purpose of farming, subject to the conditions hereinafter set forth.

.........

1. Period and Renewal. This lease is for a one-year period beginning.... 19. ., but becomes automatically renewed from year to year until terminated by mutual consent, by failure of either party to keep the covenants of this agreement,

or by written notice six months previous to any.. its termination on that date.

of

2. What Each Party Shall Furnish. The lessee shall furnish labor, work horses, machinery, seed (except clover and grass seed, half of which shall be furnished by each party), twine, machine and fuel expense for threshing, hulling, shredding, silo filling and baling. The lessor shall pay for limestone used and the lessee shall haul and distribute this lime free of charge to the lessor.

Fertilizer shall be furnished by the lessor and lessee in the proportion in which they share in the crops on which such material is applied as hereinafter provided.

3. Crops and Seed Treatment. The crops to be grown and the soil treatment to be given on each field of the farm during the continuance of this lease shall be such as are mutually agreed on except that the lessee hereby agrees to sow each year between... .....and.... acres to clover, or to a mixture of clover and timothy in which there is at least... parts of clover to........ parts of timothy. In case this seeding of clover or clover and timothy does not result in a stand worth leaving for hay the lessee shall sow to cow peas, soy beans, or other legume satisfactory to the lessor, the land on which said clover failed. The seed for such crop shall be furnished onehalf by each party. Not over........ acres shall be in pasture or hay any one year.

4. Division of Crops. The crops raised shall be divided as follows: Each party shall receive one-half of all wheat, oats, rye, barley, corn, clover seed, or soy bean seed. If any tomatoes or potatoes are grown except in the garden plot the lessor shall receive one-third and the lessee two-thirds of such crops.

The lessee shall receive for feed for his livestock. including horses, such hay raised on the farm as is needed for good results with such livestock, but shall not waste such hay by bedding or excessive feeding. If not enough livestock is kept to consume economically all the hay the remainder shall be sold and the proceeds shared equally.

Inasmuch as the lessee shall have been at no expense in connection with putting in clover in the.. ..acre field in clover, the first year he shall pay the lessor $..

per acre