A Survey of Theories of Cropshare Tenancy*

Mohammad Taslim

The Economic Record, 1992, vol. 68, issue 3, 254-275

Abstract: Cropshare tenancy is a contractual arrangement whereby the productive inputs owned by two parties are brought under the same management to produce an output that is shared between them in a pre‐arranged proportion. It has doggedly survived for millenia in different parts of the world. Its economic advantage was, however, not apparent to the early economists, and curiously they regarded it with much disapproval in spite of its voluntary nature. Recent research has unveiled the rationale of its occurrence and established its versatility in effectively responding to different environments and a multitude of market inefficiencies. It is indeed a redundant system if all markets exist and are perfect. But when some markets are non‐existent or suffer from distortions, cropsharing can satisfactorily overcome these inefficiencies to increase production and thereby improve welfare of one or both parties.

Date: 1992
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