Who Pays for What in Nebraska Crop-Share Leases

Crop-share leasing arrangement data in Nebraska is the subject of a new report from the Center for Agricultural Profitability at the University of Nebraska-Lincoln. It captures real data about how responsibilities and expenses are divided between landowners and tenants in the state.

This report summarizes 92 usable crop-share lease arrangements across irrigated, non-irrigated and operations with both irrigated and non-irrigated acres. It is designed as a benchmarking resource for lease conversations, not as a recommended lease formula.

The Nebraska Crop-Share Lease Survey was conducted from October 2024 through March 2025. Participants were recruited through online promotion and outreach at in-person meetings. Since participation was voluntary rather than based on a probability sample, survey findings describe the lease arrangements reported by participants and should not be interpreted as estimates for all Nebraska crop-share leases. 

What is a crop-share lease?

A crop-share lease is an agreement in which the landowner and tenant each receive a share of the crop and allocate responsibility for selected production expenses. Both parties are exposed to yield and price changes through their respective crop-shares, but they do not necessarily bear all production, liability, insurance, or financial risks equally. Because both parties share revenue and production risk, crop-share leases often require coordination on certain production and marketing decisions.

A crop-share lease does not automatically divide every farming expense according to the crop-share percentage. 

All lease splits are stated as the tenant’s share first and the landowner’s share second. For example, a 60/40 lease allocates 60% of the crop to the tenant and 40% to the landowner.

Nebraska crop-share survey findings

Participation in the crop-share survey was voluntary. Two-thirds of the arrangements that could be assigned to a reporting district ›came from the east and southeast regions of the state, partly a reflection of where surveys were most often distributed. And the 67/33 and 70/30 groups are so small that a single response swings a percentage by 14 to 20 points. This survey results include actual reported arrangements.

Table 1 summarizes the 92 survey responses by irrigation status and crop-share arrangement. The sample was relatively balanced across irrigated, mixed (irrigated and non-irrigated), and non-irrigated operations.

Across the crop-share arrangements reported in this survey, yield-related inputs were more often shared, while field operations and labor were more often assigned to the tenant. Reported practices also differed by crop-share split, particularly for seed and irrigation energy.

• 50/50 and 60/40 arrangements dominate. Among the 92 crop-share arrangements reported, 36 were noted as 50/50 and 37 were noted as 60/40 arrangements; together accounting for 79%.
• Yield-enhancing inputs generally follow the lease split. Fertilizer was shared in 92–100% of the 50/50 and 60/40 irrigated and non-irrigated larger response groups. In-season herbicide, fungicide, and insecticide inputs were shared in 76–100% of the 50/50 and 60/40 groups, but less frequently in the smaller 67/33 and 70/30 response groups.
• Seed is the clearest dividing line. Seed was shared in 78–88% of 50/50 crop-share leases but treated as a tenant expense in 83–92% of 60/40 crop-share arrangements.
• Field operations stay with the tenant. Planting and harvesting were tenant expenses in 80–100% of the detailed groups; trucking was assigned to the tenant in 60–100%.
• Irrigation energy varies with the crop-share arrangement. It was shared in 100% of 50/50 irrigated observations and 67% of 60/40 irrigated observations but was a tenant expense in 71% of the seven 67/33 irrigated observations.
• Irrigation parts and labor. Landowners most often indicated covering the cost of irrigation equipment parts, especially on wells, while power-unit and pivot labor expenses were more evenly divided between tenant and landowner.

Cost-share terms: 50/50 arrangements

Reported 50/50 arrangements showed the most consistent cost-allocation pattern. Herbicide, insecticide, and fungicide products are almost always shared, seed is usually shared, and field operations are generally assigned to the tenant. Irrigation energy is shared in all reported irrigated 50/50 observations.

Table 2 shows how input costs are allocated in irrigated 50/50 crop-share arrangements across Nebraska. “Shared” indicates that the cost is divided between the tenant and landowner in proportion to the lease. “Tenant” or “Landowner” indicates that the respective party pays the entire expense. For example, seed costs are shared according to the lease in 78% of the reported arrangements, while the tenant pays the entire seed expense in 22% of the reported arrangements.

Note: Row totals do not always sum to n=24. Each cell reflects the number of respondents who selected that option for that specific input; a small number of respondents left that individual line item blank.  Percentages are calculated based on the number of respondents who answered that specific question, not the full n=24. 

Cost-share terms: 60/40 arrangements

The 60/40 table shows most fertilizer, insecticide, herbicides, and fungicides inputs still commonly follow the lease split but seed and field operations usually shift to the tenant. Irrigation energy is less uniform than under 50/50 leases.

Table 3 shows how input costs are allocated in irrigated 60/40 crop-share arrangements across Nebraska. “Shared” indicates that the cost is divided between the tenant and landowner in proportion to the lease. “Tenant” or “Landowner” indicates that the respective party pays the entire expense.

Note: Row totals do not always sum to n=20. Each cell reflects the number of respondents who selected that option for that specific input; a small number of respondents left that individual line item blank.  Percentages are calculated based on the number of respondents who answered that specific question, not the full n=20. 

Tables for non-irrigated land are available in the full report.

Applying Survey Results to a Written Lease

The share percentage is only one part of the overall economic arrangement. Use the survey to identify questions, then evaluate the value and risk contributed by both parties.

Key negotiation question: Do the crop share and assigned expenses provide each party a reasonable expected return on the resources and risks they contribute?

A practical lease review sequence

1. List every contribution: land, buildings, irrigation equipment, seed, fertilizer, herbicide, insecticide, fungicide, application, machinery, labor, management, insurance and financing.
2. Assign payment responsibility for each item and state whether the cost is shared in the crop proportion or under a different formula.
3. Define operating decisions: crop choice, input rate, vendor selection, repair authorization, conservation practices, and marketing responsibilities.
4. Run projected returns for both parties under low, expected, and high yield-price scenarios.
5. Write procedures for records, reimbursement timing, government payments, crop insurance, storage, hauling, and end-of-lease inventories.
6. Review the agreement annually and obtain legal and tax advice appropriate to the parties' situation.

The full report includes a summary of reported arrangements related to items like crop insurance, grain marketing, irrigation, and more. It is intended to be used as a benchmarking resource. Lease terms should be tailored to each farm, its parties, and applicable law. Find the full report at https://cap.unl.edu/cropshare.