Crop-share Cash Farm Lease is an agricultural leasing agreement between a landlord and tenant. It is a type of agricultural rental agreement where the tenant agrees to pay the landlord a share of the crop or cash for the right to use and occupy the farm land for farming purposes. The landlord and tenant negotiate the terms of the lease, including the percentage of the crop or cash the tenant will pay to the landlord. There are two main types of Crop-share Cash Farm Lease agreements: 1. Crop-share Lease: In this type of lease, the tenant agrees to pay the landlord a share of the crop or cash in exchange for the use of the land. The landlord and tenant typically agree on a percentage of the crop or cash that the tenant must pay to the landlord. 2. Cash Farm Lease: In this type of lease, the tenant agrees to pay the landlord a pre-determined amount of cash per acre in exchange for the use of the land. The amount of cash the tenant must pay is typically negotiated between the landlord and tenant.
Crop-share Cash Farm Lease
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FAQ
Of Crop Share Arrangements In addition to crop share, the lease agreement can be a crop-share/cash, straight cash, or flexible cash arrangement. In addition to leasing, a landowner may hire custom operators to do the field work or ?direct operate? by hiring labor to operate the owner's machinery.
The traditional share arrangement for a grain crop like corn or wheat is one-third to the landowner and two-thirds to the tenant. 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.
Crop share A common share agreement would be 25% to landowner and 75% to tenant of the harvested grain crop when the landowner does not share in any production costs.
The traditional share arrangement for a grain crop like corn or wheat is one-third to the landowner and two-thirds to the tenant. 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.
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.
These types of contracts typically specify a quantity to be delivered, product price, delivery time and location, and product specification. Price premiums are often paid for commodities that exceed quality standards. Most contract crop production takes the form of a marketing contract.
Tenant farmers usually received between two-thirds and three-quarters of the harvest, minus deductions for living expenses. Sharecroppers, however, received only half the crop, from which landowners deducted rent and any credit (with interest) for supplies provided for the family's subsistence.