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About: Crop share rent     Goto   Sponge   NotDistinct   Permalink

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Crop share rent (in contrast to economic rent) is a proportion of the crop harvest (yield) to be paid by the tenant farmer to the land owner as compensation for occupying and exploiting the rented land. This arrangement puts the landlord, like the tenant operator, at risk from variation in yields and prices. For the farm operator, crop share rent is a mechanism for sharing risks with the landlord. In relation to commodity programs for supporting prices and farm incomes, cash rent landlords do not have a beneficial interest in the commodity and are not eligible payments.