Lease in kind
A lease in kind was when the rent for agricultural land was not paid as a sum of money, but in the form of goods previously obtained on the area or on the farm. This type of payment is no longer used in Germany, Austria and Switzerland.
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The lease in kind was of particular importance in the case of strong fluctuations in the value of money and prices, when natural goods are a secure means of payment, and with small landlords who needed natural goods for self-sufficiency. The tenant paid a predetermined amount of his harvest and therefore has no marketing risk.
Partial construction, in which the harvest yield was shared between the owner and the lessee, was more common. The division ratio was determined by services, soil quality and irrigation and by the supply and demand for land. The lease period was usually only one year in the case of verbal contracts with an often tacit extension, which meant planning security for the lessee. Fair partial building conditions would have meant a division of capital and risk. The one-sided shift in the balance of power on the leasing market due to the high demand due to the population increase has degenerated the part of the building and led to indebtedness, dependence and impoverishment of many tenants.
In the USA there was a similar leasing system with share cropping.