Some farm owners have switched from the traditional crop-share lease to a cash lease. Instead of receiving a share of the crop, they are paid cash. Reasons for switching from a crop-share lease to a cash lease may include a desire for less involvement in the farm operation on the part of the owner and simplified farm record keeping for the operator. Cash leases are one of several options that owners and operators should examine before judging which lease form is best.
Under a typical cash lease, the operator will receive all crop income, make all management decisions and pay all crop expenses. The owner will pay land taxes, his/her own insurance and major building repairs. For this, the owner receives a known, stable income and is freed from farm management responsibilities.
Maryland Cash Farm Lease with Provisions for Improving, Conserving and Maintaining Farm
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