UNITED STATES DEPARTMENT OF AGRICULTURE 



iSV&* < &mfL 



BULLETIN No. 650 



Office of the Secretary 



Contribution from the Office of Farm Management 



W. J. SPILLMAN, Chief 



Washington, D. C. 



February 26, 1918 



LEASE CONTRACTS USED IN RENTING FARMS 



ON SHARES. 



[A study of the distribution of investments, expenses, and income between 



landlord and tenant.] 



By E. V. Wilcox, Agriculturist. 



CONTENTS. 



Different systems 1 



Length of lease period 3 



Methods of sharing crops arid stock products. . 4 



Methods of sharing pasture 15 



Contracts for clearing land 15 



Ownership of equipment 15 



Methods of sharing expenses 17 



Une xhausted value of f ertilizers 20 



Repairs and improvements 21 



Privileges and perquisites 21 



Page 



Restrictions 22 



Supervision by the landlord 22 



Good husbandry 22 



Advances to tenant 23 



General systems of share leasing 23 



Sample stock-share lease 24' 



Assumptions underlying lease contracts 28 



Suggestions toward a rational lease contract . . 33 



Status of the tenant 38 



DIFFERENT SYSTEMS. 



About 37 per cent of the farms in the United States are operated 

 by tenants under lease. Acute interest is being manifested by both 

 landowners and tenants in the general features and special stipula- 

 tions of lease contracts. Numerous inquiries are being made as to 

 proper methods of sharing equipment, labor, and other expenses in- 

 volved in farm operations, and as to the proper fractions to use in 

 dividing proceeds. Practically all these questions are of an agricul- 

 tural rather than a legal nature. It is a matter of much importance, 

 therefore, to study lease contracts from a pure farm management 

 standpoint. The wording of a lease is a comparatively simple prob- 

 lem after the conditions essential to fairness have been agreed upon. 

 Several methods of leasing are in use, as shown by an examination 

 of leases in force. Farms may be rented for cash, either a stipulated 



28624°— 18— Bull. 650 1 1 



