Jay, an experienced farmer, sold his farm because he is no longer interested in working full-time. He would like to farm a small piece of land that will yield just enough produce to provide for his family and to sell at a roadside stand. Jay wants to explore his options.
What Is Sharecropping?
Generally speaking, the term “sharecropping” refers to an agreement between a property owner and another person whereby the property owner hires the other person to farm the property owner’s land. In exchange for the person’s labors, the person is entitled to receive a share of the crop or harvest. Over the years, however, many different forms of sharecropping arrangements have been developed between parties.
The different types of sharecropping arrangements involve numerous considerations, including:
- tax implications;
- the extent to which each party wants to be involved in the arrangement;
- the manner in which the parties will interact with one another;
- Social Security benefit implications; and
- federally-funded programs.
Further information on sharecropping can be obtained from the local department of agriculture.
Copyright 2012 LexisNexis, a division of Reed Elsevier Inc.