Three forms of share rent may be recognized:
(a) Where landlord furnishes only real estate (land and buildings), the tenant supplying everything else, including teams, machinery, labor, seeds and fertilizers. Under these conditions it is customary for the landlord to receive one-third and the tenant two-thirds of the crop raised or the product produced.
(b) The second form of share rent is where the landlord furnishes the real estate; the tenant supplies teams, tools and labor, while the landlord and tenant own equally all live stock other than teams, and bear equally all other expenses, as for seeds, fertilizers and cost of threshing. Under this system, it is customary for landlord and tenant each to receive one-half of all sales. As each owns one-half of all the live stock (teams excepted), each shares equally in all increase. The landlord pays for the cost of permanent improvements such as new buildings, fences, repairs and drainage. The tenant, in making these improvements, in some cases, agrees to furnish two days' labor for one day's pay. The theory is that, while the increased value of the real estate is of advantage only to the landlord, the improved facilities are of some benefit to the tenant. Since he can do this work at odd times when not otherwise employed, he can afford to take a generous view of the matter. It is obvious that if he remains on the farm long enough the tenant will come into his share of the benefit, while if he intends to leave the farm soon he may not. There is in the mind of the writer a prosperous tenant who, after eighteen years on a single farm, declared he had no desire to make a change, and doubtless there are thousands of similar instances.
Under the plan in which the tenant furnishes everything except the real estate, the tendency of the farm is apt to be downward both as to the improvements and the crop-producing power of the soil. The interests of the landlord and tenant are not mutual. This condition of tenancy leads to growing only those crops which can be readily sold from the farm and to frequent changes of the tenant, with its accompanying auction sales of property. In one region, where this system prevails, it has been facetiously remarked that each tenant has a sale every year to determine how much he is worth. It is less trouble than taking an inventory.