Simple Cash Farm Lease Agreement With Tenants
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FAQ
Usually, the expenses paid, and crop received, are equal to the share ? i.e. the landowner would pay one-third of the expenses and receive one-third of the crop. For hay crops, the share is typically split 50/50.
In the typical 50-50 crop share lease, the tenant provides all the labor, owns the field machinery, pays for fuel, oil and repairs for machinery and 50 percent of other operating expenses. But within this general framework there are variations, especially with regard to services provided and sharing of costs.
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.
Characteristics of a Farm Share: Farm share members purchase a share before the season starts and shoulder the risks along with the farmer. The farmer then has an obligation to provide a share of the produce they grow to their members.
The 50/50 crop share lease is one of the oldest leases in agriculture. All income and expenses are split 50/50. The landowner provides the land and the farm operator provides his labor and machinery. Due to the large increase in land values, this lease has become outdated and less common.
