36 BULLETIN 650, U. S. DEPARTMENT OF AGRICULTURE. 
farms on which it is assumed that the tenant’s labor is either of 
greater or less value than the use of the land, a modification of the 
same general method is coming into use. According to this modified 
plan it is stipulated in the lease that from the gross returns shall be 
taken a specified wage for the tenant, a specified interest on land for 
the landowner, and all expenses, after which the proceeds are divided 
equally. Under this system it has been found necessary to stipulate 
that the tenant’s wages shall be paid before the interest on land is 
taken from the gross receipts. Otherwise, in poor years, the tenant 
might suffer an undue hardship. 
In localities where land values, under speculative influences, have 
reached a figure higher than their actual productive power for agri- 
cultural purposes would warrant, it may in time become necessary 
to distinguish between the two elements in land values—actual pro- 
ductive power and the increase due to anticipated rise in price. In 
such an event it would seem fair to disregard the latter in leasing 
land for agricultural purposes, for the tenant shares only in the 
crop- -producing power of the land, and can not participate in the 
speculative rise of land values. 
STATUS OF THE TENANT. 
The economic position of the tenant varies greatly under different 
systems of leasing. Under cash rent the tenant is completely inde- 
_pendent. He makes plans on his own initiative, organizes his re- 
sources, determines all matters of policy at his own discretion, decides 
the time and manner of applying labor to the various farm enter- 
prises, and receives all returns. Share leasing involves a partnership 
arrangement in which the two parties are jointly interested and deter- 
mine all details of plan by mutual consultation. In some leases, 
however, it is stipulated that in case of failure of the landowner and 
tenant to agree on methods the judgment of the landowner shall pre- 
vail. If the landowner furnishes most or all of the equipment he re- 
tains title to all crops and products till they are sold and division 
made, and in general directs all farm operations. Under these con- 
ditions the tenant is virtually a hired man. Such tenants may re- 
celve money advances from the landowner and thus become even 
more dependent than the ordinary hired man. In fact there is no 
sharp line of demarcation in status between tenant and manager or 
hired man working wholly under direction of the landowner. 
O 
