28 BULLETIN 650, U. S. DEPARTMENT OF AGRICULTURE. 



ASSUMPTIONS UNDERLYING LEASE CONTRACTS. 



A study of leases in actual operation discloses the existence of a 

 few interesting general assumptions which are of much value hi 

 establishing a basis for a rational form of lease contract. Share 

 renters on good cotton farms may pay the landlord one-third the 

 cotton, but only one-fourth on poor farms. Similar arrangements 

 are to be noted in other parts of the United States. The obvious 

 assumption underlying this adjustment is that on fertile farms the 

 landlord is entitled to a larger share of the crops than on poor 

 farms under otherwise similar conditions. The same consideration 

 is, of course, apparent in renting land for cash, the cash rent per 

 acre varying with the agricultural value of the land. 



In many cases the landlord accepts as rent a smaller share of 

 the produce delivered at the railroad station than at the farm. 

 For example, on a Kansas grain farm the landlord takes one-third 

 of the wheat at the farm or one- fourth at the railroad station at 

 the option of the tenant. The assumption in such cases evidently 

 is that the farther the farm from market the smaller should be 

 the landlord's share of the crops if the tenant is required to haul 

 them to market. This assumption is manifestly in accord with 

 justice and common sense. 



On general farms the landlord's share is often different for dif- 

 ferent crops. For example in Colorado the landlord may get one- 

 half of the hay, one-third of the grain, and one-fourth of the sugar 

 beets, or one-half of the hay, one-half of the apples, one-third of 

 the wheat, one-third of the potatoes, and one-fourth of the sugar 

 beets. In Delaware the landlord may get two-fifths of the tomatoes 

 and one-half of the grain, or one-fourth of the tomatoes and one- 

 half of the grain. In Indiana the landlord may get two-thirds of 

 the eggs and one-half of the milk, or one-half of the hay and corn 

 and one-third of the wheat and oats, or two-fifths of the wheat and 

 one-half of the corn. In Iowa the landlord may get one-half of the 

 hay and two-fifths of the corn. In the cotton belt the landlord may 

 get one-third of the corn and one-fourth of the cotton. In Michigan 

 and Missouri the landlord may get one-half of the hay and one-third 

 of the corn. In Nebraska the landlord may get one-half of the hay 

 and one-fourth of the corn. In Ohio the landlord may get one-half 

 of the hay and corn and three-sevenths of the tobacco, or one-half 

 of the hay and corn and two-fifths of the tobacco and apples. In 

 all these cases of variation in the shares of different crops on a given 

 farm the tenant provided all labor. The specified differences in the 

 shares of different crops is an acknowledgement of the fact that 

 more labor is required for the production of certain crops than for 

 others, and that the shares should in justice be correspondingly modi- 



