Amr ibn Dinar said: I heard Ibn Umar say: We did not see any harm in sharecropping till I heard Rafi ibn Khadij say: The Messenger of Allah ﷺ has forbidden it. So I mentioned it to Tawus. He said: Ibn Abbas told me that the Messenger of Allah ﷺ had not forbidden it, but said: It is better for one of you to lend to his brother than to take a prescribed sum from him.
Hadith Referenceسنن ابي داود / كتاب البيوع / 3389
Hadith Gradingالألبانی:صحيح | زبیر علی زئی:صحيح مسلم (1547)
1؎: The permissible form of muzara‘ah (sharecropping) is that the amount of grain obtained from the land is determined in such a way between the owner and the sharecropper that no dispute arises between them, and both are partners in the agreed-upon profit and loss related to the grain. Or, the land is given on sharecropping in exchange for a fixed amount of money. The form of muzara‘ah that is impermissible according to the Shari‘ah is mentioned in the hadith of Hanzalah bin Qays, number (3392).
Explanation & Benefits
Shaykh Umar Farooq Saeedi
Benefits and Issues: It is not haram (forbidden) or impermissible to give land on the basis of sharecropping or for a portion of the produce. However, if one gives it without compensation, then it is better.
Source: Sunan Abu Dawood – Commentary by Shaykh Umar Farooq Saeedi, Page: 3389
The narrator named Amr says: I said to Tawus, "O Abu Abdur Rahman! If you refrain from giving (land) on lease, it would be appropriate, because people have narrated that the Prophet Muhammad (peace be upon him) forbade this." So Tawus replied, "O Amr! The person who has more knowledge than all these people,"—by this Tawus meant Sayyiduna Abdullah ibn Abbas (may Allah be pleased with them both)—"he has informed me that the Prophet Muhammad (peace be upon him) did not forbid this. He (peace be upon him) said: 'If a person gives his land (without compensation) to his brother, it is better for him than taking a fixed compensation from him.'" Then Tawus said: "When Sayyiduna Mu'adh (may Allah be pleased with him) came to Yemen, he allowed the people there to continue this practice." Amr says: "I help those people and give them gifts; if they benefit, I also benefit and so do they; if there is a decrease in the produce, I also bear the loss and so do they. The custom of Haqla was prevalent among the Ansar. You should inquire about this." (The narrator says:) "I asked Ali bin Rifa'ah about this, and he said: 'This is Mukhabarah.'"
Shaykh Muhammad Ibrahim bin Basheer
Benefit: It is established from this hadith that giving land on a sharecropping basis is permissible, as long as there is no deception involved. If there is deception in it, then it is not permissible at that time. Both the owner of the land and the sharecropper will be partners in both profit and loss.
Source: Musnad al-Humaydi: Commentary by Muhammad Ibrahim bin Bashir, Page: 519