Sharecropping is a legal arrangement with regard to agricultural land in which a landowner allows a tenant to use the land in return for a share of the crops produced on that land.
Sharecropping has a long history and there are a wide range of different situations and types of agreements that have used a form of the system. Some are governed by tradition, and others by law. The French métayage, the Catalan masoveria, the Castilian mediero, the Slavic połownictwo and izdolshchina, the Italian mezzadria, and the Islamic system of muzara‘a (المزارعة), are examples of legal systems that have supported sharecropping.
Sharecropping has benefits and costs for both the owners and the tenant. Under a sharecropping system, the landowner provided a share of land to be worked by the sharecropper, and usually provided other necessities such as housing, tools, seed, or working animals. Local merchants usually provided food and other supplies to the sharecropper on credit. In exchange for the land and supplies, the cropper would pay the owner a share of the crop at the end of the season, typically one-half to two-thirds. The cropper used his share to pay off his debt to the merchant. If there was any cash left over, the cropper kept it—but if his share came to less than what he owed, he remained in debt.
Farmers who farmed land belonging to others but owned their own mule and plow were called tenant farmers; they owed the landowner a smaller share of their crops, as the landowner did not have to provide them with as much in the way of supplies.
In this system, the landowner encourages the cropper to remain on the land, solving the harvest rush problem. Since the cropper pays in shares or portions of his harvest, owners and croppers both share the risks and benefits of harvests being large or small and of prices being high or low. Because both parties benefit from larger harvests, tenants have an incentive to work harder and invest in better methods than, for example, in a slave plantation system.