Tenant farming is a common farming practice that involves raising crops and livestock on rented land. Farmers who rent the land they farm are called tenants. People who own the land are called landlords.
There are two basic types of leases used in tenant farming–(1) cash leases and (2) share leases. Under a cash lease, the tenant pays a fixed amount of rent. The landlord provides land and buildings, and the tenant pays all other production costs.
Under a share lease, the tenant and landlord agree to share both the crop and the cost of producing it. For example, in a 50-50 share lease, the landlord may supply land and buildings and pay for half the necessary seed, fertilizer, and chemicals. The tenant furnishes labor, machinery, and the rest of the seed, fertilizer, and chemicals. The tenant and landlord each receive half the crop.
