Sharecropping

economic-dictionary

The concept of sharecropping includes a contractual model characterized by the transfer of agricultural land by one natural or legal person to another to carry out its economic exploitation in exchange for part of the profit obtained.

Sharecropping relationships or contracts are established especially in rural or rustic areas, where owners rent or transfer their farms to professionals who take advantage of them with economic exploitation.

Following what has been indicated, and despite the fact that it may occur in other economic contexts or sectors, associative sharecropping contracts are much more widely extended in the field.

A large number of agricultural and / or livestock farms operate following this type of legal relationship, where landowners leave it to individual foremen who take organizational control.

The lessee assigns these economic holdings to the other party, taking responsibility for granting at the same time a certain percentage of the profits to the lessor (either in cash or in kind). These contracts involve the use and enjoyment of facilities, machinery and other resources belonging to and inventoried on the farm.

In the case of sharecroppers in the field, it is common for the leased to even live on the land they exploit, taking full reins of their day-to-day life. Thus there is the figure of the agricultural foreman.

The sharecropping model in other contexts

Over time, this type of contractual relationship has undergone a series of adaptations to other areas beyond the world of agriculture and livestock farming.

There are a large number of urban and rural projects by means of which land, industrial centers or houses are transferred and rented to landlords. Of course, on the condition that they undertake actions or economic activities in said sites or undertake remodeling of them in some cases.

Another striking case whose operation is similar is that used by populations that give land or public facilities to individuals or private companies to carry out an economic activity there.

The corresponding benefits will affect with a percentage distribution between parties. This is what happens with many football clubs and their stadiums, for example.

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