This arrangement is coming into greater practice in cases where the landowner prefers not to pay for a portion of the various input costs and, thus, accepts a smaller share of the output. Output Shares for Alfalfa and Other Hayland Alfalfa and hay production represent multiyear crops which create different configurations of tenant-landlord contributions to the production process. However, in the South, East and Southeast Districts, other output shares were also common in 1996. But if the tenant participates in the cost of establishment during the initial year of the alfalfa crop, then the tenant output shares may be somewhat higher. Reported Tenant's Share of Output in Crop-Share Leasing of Alfalfa and Hayland in Nebraska by Type of Cropland and Agricultural Statistics District, 1996.
Bold entries represent the most common tenant's share for that type of land in that area.
Across the southern districts, cases of somewhat larger tenant shares were also reported. Input Share Arrangements Economic theory suggests that the cost of key output increasing variable inputs in crop production should be shared by the tenant and landowner in the same proportion as the output is shared. In so doing, these inputs will be used to the level of maximum efficiency in the crop production process. In reality, whether specific inputs are shared and whether they are shared in the same proportion as output depends on the negotiation between the landowner and the tenant as well as on the relative proportion of the fixed input costs contributed by each party in the production process. Seed, fertilizer, herbicide and insecticide materials, lime, and crop drying were almost universally shared in the same proportion as output in 1996.