Farm Table says:
This US-based resource was written way back in 1981 (updated in 1996), but provides useful comparison between crop-share (sharefarming/profit share) and cash-rent (leasing) side by side.
Five principles are put forward (and explained at more length in PDF):
Five important principles to follow include:
- Variable expenses that increase yields should be shared in the same percentage as the crop is shared.
- Share arrangements should be adjusted to reflect the effect new technology has on costs and returns.
- Both the landlord and tenant should share total returns in the same proportion as they contribute resources.
- Tenants and landlords should be compensated at the termination of the lease for the undepreciable balance of long-term investments.
- Communication should be maintained between the landlord and tenant.
The PDF is 23 pages long but worth considering if entering into a crop-share/profit share arrangement.