[Code of Federal Regulations]
[Title 7, Volume 7, Parts 700 to 899]
[Revised as of January 1, 2001]
From the U.S. Government Printing Office via GPO Access
[CITE: 7CFR795.15]

[Page 496-497]
 
                          TITLE 7--AGRICULTURE
 
                            CHAPTER VII--FARM
                SERVICE AGENCY, DEPARTMENT OF AGRICULTURE
 
PART 795--PAYMENT LIMITATION--Table of Contents
 
Sec. 795.15  Determining whether agreement is a share lease or a cash lease.

    (a) Cash lease. If a rental agreement contains provisions for a 
guaranteed minimum rental with respect to the amount of rent to be paid 
to the landlord by a tenant, such agreement shall be considered to be a 
cash rental agreement. In addition, the rental agreement must be 
customary and reasonable for the area.
    (b) Share lease. If a rental agreement contains provisions that 
require the payment of rent on the basis of the

[[Page 497]]

amount of the crop produced or the proceeds derived from the crop, such 
agreement shall be considered to be a share rental agreement. In 
addition, the rental agreement must be customary and reasonable for the 
area.

[51 FR 8454, Mar. 11, 1986 and 51 FR 36905, Oct. 16, 1986]