The function of the form is to record operating procedures agreed upon by the parties entering the contract. Normally, crop-sharing involves grain crops such as small grains, corn, milo and soybeans and land used to participate in government programs. The landowner's share of the crop depends on the contribution made toward production of the crop. When crops are divided 50-50, the landowner normally pays 50 percent of the cost of fertilizer, seed and chemicals in addition to providing the land. The owner normally furnishes land and buildings, while the tenant furnishes major portions of the crop machinery.
Livestock is owned jointly.
Production costs such as feed, veterinary and medicine, other livestock expenses, fertilizer, seed and chemicals are shared equally. Livestock machinery and equipment may be jointly owned. Labor costs are shared according to the agreement, as are repairs and upkeep on permanent buildings. The landowner usually pays for construction of permanent buildings, or arrangements are made to reimburse the tenant in case the lease is terminated. Livestock and crop sales are divided according to the terms of the agreement.