Tenants in Common & Crop Share Leases in Indiana

Written Leases

Indiana crop-share leases do not have to be written as of July 2011. However, you should request your landlord give you a lease in writing before entering a crop-share agreement. A written lease helps reduce confusion between landlord and tenant about the agreement and protects both parties' rights. A written lease spells out exactly how much the tenant owes the landlord and how much work each must do on the land.

Crop-share leases in Indiana are more like business partnerships than traditional landlord-tenant leases. The agreement requires the tenant to provide equipment, labor and some product to the landlord, and both may be required to work on the land. Thus, the tenant and landlord should ensure that they can work together well and communicate regularly with each other before entering into a lease, as lack of communication can create a financial hardship for both parties.

In many cases, the lease requires the landlord to provide land and possibly some buildings, while the tenant is required to provide farming equipment and labor. The lease should also specify how the landowner and tenant will split expenses related to maintaining the farm. Expenses and income should be split using a similar method so that neither partner is cheated out of income or required to pay an unfair amount of expenses.

Unlike regular leases, Indiana crop-share leases are often between family members or other people who know and trust each other well. Thus, it is too simple to trust the other partner and not set up a formal agreement. However, landlords and tenants should treat the lease as a business arrangement to avoid financial problems, misunderstandings and damage to their non-business relationship.