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Crop-share arrangements refer to a method of leasing crop land where the production (crop) is shared between the landowner and the operator. Other income items, such as government payments and crop residue, are also often shared as are some of the production expenses.
Meanwhile, in central Alberta, the average price of farmland is $5,500 an acre. When combined with Alberta's rent-to-price ratio of 2.6 percent, the average cash rent comes out to $143 an acre.
There are a few 60-40 leases in which the landowner receives 60 percent of the crops and pays 60 percent of the operating costs, but as a general rule the smaller share, 1/3 or 40 percent, is the portion of the crop which goes to the landowner.
New Grazing Rates in Alberta ZonesOld minimum rate/AUM2021 phased-in rate/AUMZone I (Southern and Central Alberta)$2.31 ? $2.79/AUM$2.95/AUMZone II (Northern Alberta)$1.39/AUM$1.74/AUM
A land lease contract, also known as a land agreement or ground lease, is a contract that allows a landowner (landlord) to rent their land to another person or company (tenant). The land may be used by the tenant for multiple uses ranging from agricultural to residential or commercial purposes.