Detailed crop share farmland lease. Costs and crops are shared by landowner and tenant. Provides for detailed division of costs.
Virginia Farm Lease or Rental - Crop Share
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FAQ
NC farmland rental rates can vary widely from $30 to $285 per acre for cropland, with most pastureland rent from $15 to $50 per acre. In some situations, landowners may offer a no-cost lease to farmers who agree to keep the land in production.
The traditional share arrangement for a grain crop like corn or wheat is one-third to the landowner and two-thirds to the tenant. Usually, the expenses paid, and crop received, are equal to the share i.e. the landowner would pay one-third of the expenses and receive one-third of the crop.
The 7% increase in this category was the largest since 2014. Virginia cropland values came in ahead of the national average, increasing over 2% from $4,680 per acre in 2020 to $4,790 in 2021. Virginia's real estate value also was higher than the national average at $4,700 per acre, up 1.7% from 2020.
Crop-share arrangements refer to a method of leasing crop land where the production (crop) is shared between the landowner and the operator. Other income items, such as government payments and crop residue, are also often shared as are some of the production expenses.
The national cash rental rate for an acre of farmland is $140 a year, while in Virginia it currently averages $59.
Virginia Farm Facts Virginia has 43,225 farms. The typical Virginia farmer is 58.5 years old. The average farm size is 181 acres. Farms cover 7.8 million acres.
The national cash rental rate for an acre of farmland is $140 a year, while in Virginia it currently averages $59.
Sharecropping is a legal arrangement with regard to agricultural land in which a landowner allows a tenant to use the land in return for a share of the crops produced on that land.
With a crop-share lease, the landlord receives a share of the crops produced in exchange for the use of the land by the tenant. The amount of the share typically depends on local custom. The landlord usually agrees to pay a portion of the input costs under a crop-share lease.
Most farmers find that a combination of both ownership and leasing is desirable, especially when capital is limited. For many new farmers, especially in areas where land is quite expensive, leasing land is often the best option.