Crop share rent

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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. [1]

In economics, economic rent is any payment to an owner or factor of production in excess of the costs needed to bring that factor into production. In classical economics, economic rent is any payment made or benefit received for non-produced inputs such as location (land) and for assets formed by creating official privilege over natural opportunities. In the moral economy of neoclassical economics, economic rent includes income gained by labor or state beneficiaries of other "contrived" exclusivity, such as labor guilds and unofficial corruption.

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.

This is a private version of Community-supported agriculture but subtly different from sharecropping as practiced in Southern states of America, which was somewhat similar to serfdom or indenture, since the tenant was bound to one particular master and could not offer his services to the most generous landowner

Community-supported agriculture socioeconomic model of agriculture and food distribution

Community-supported agriculture is a system that connects the producer and consumers within the food system more closely by allowing the consumer to subscribe to the harvest of a certain farm or group of farms. It is an alternative socioeconomic model of agriculture and food distribution that allows the producer and consumer to share the risks of farming. The model is a subcategory of civic agriculture that has an overarching goal of strengthening a sense of community through local markets.

Sharecropping form of agriculture in which a landowner allows a tenant to use the land in return for a share of the crops produced on their portion of land

Sharecropping is a form of agriculture in which a landowner allows a tenant to use the land in return for a share of the crops produced on their portion of land. Sharecropping has a long history and there are a wide range of different situations and types of agreements that have used a form of the system. Some are governed by tradition, and others by law. Legal contract systems such as the Italian mezzadria, the French métayage, the Spanish mediero, the Slavic połowcy,издoльщина or the Islamic system of muqasat, occur widely.

Serfdom status of peasants under feudalism

Serfdom is the status of many peasants under feudalism, specifically relating to manorialism, and similar systems. It was a condition of debt bondage and indentured servitude, which developed during the Late Antiquity and Early Middle Ages in Europe and lasted in some countries until the mid-19th century.

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Producer, in United States agricultural policy, is generally thought of as a farm operator. However, given the sometimes complex ownership and rental arrangements of today’s farms, the 2002 farm bill defines a producer for purposes of farm program benefits as an owner-operator, landlord, tenant, or sharecropper that shares in the risk of producing a crop and is entitled to a share of the crop produced on the farm. Under this definition, a landlord receiving cash rent is not considered a producer and is not eligible to receive subsidy program payments. However, a landlord receiving crop share as rent is a producer.

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References

  1. Schickele, Rainer (1941). "Effect of Tenure Systems on Agricultural Efficiency". Journal of Farm Economics. 23 (1): 185–207. doi:10.2307/1231850.
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