This will vary according to the type of crop, land productivity, crop storage, input costs, expected crop price, and sharing of farm program payments. Two ways to determine the percentage share are to compare the agreement to a fixed cash rent amount or to a 50-50 crop share amount. The percentage share should be set accordingly to yield a similar rent amount. A share of the gain lease requires that the total income be divided between the landowner and the tenant according to their contributions to the operation. The landowner provides land and fencing.
Total income is determined by the value of the weight the livestock gained while on pasture.
This means the livestock must be weighed before being put on pasture at the beginning of the season and again at the end of the season. The weight gain is then multiplied by a price to determine the value. The livestock weighing locations and the market where prices will be obtained should be agreed upon and specified in the lease. The lease usually stipulates the minimum number of animals on which rent will be paid, regardless of the number actually pastured. A livestock share lease is based on the same idea as a crop share lease.