Nafi’ (may Allah have mercy on him) narrated that Sayyiduna Ibn ‘Umar (may Allah be pleased with them both) used to rent out his fields during the time of the Prophet (peace and blessings of Allah be upon him), Sayyiduna Abu Bakr, Sayyiduna ‘Umar, and Sayyiduna ‘Uthman (may Allah be pleased with them), and in the early period of the caliphate of Sayyiduna Mu‘awiyah (may Allah be pleased with him). Then it was narrated through Rafi‘ bin Khadij (may Allah be pleased with him) that the Prophet (peace and blessings of Allah be upon him) had forbidden renting out fields. (Upon hearing this) Sayyiduna Ibn ‘Umar went to Sayyiduna Rafi‘ bin Khadij (may Allah be pleased with him), and I was with him. Sayyiduna Ibn ‘Umar asked him, and he replied that the Prophet (peace and blessings of Allah be upon him) had forbidden renting out fields. Upon this, Ibn ‘Umar said, “Do you know, during the time of the Prophet (peace and blessings of Allah be upon him), we used to rent out our fields for the produce that would grow along the water channels and for a little grass.”
Hadith Referenceاللؤلؤ والمرجان / كتاب البيوع / 996
Hadith Gradingمحدثین:«صحیح»
Hadith Takhrij«صحیح، أخرجه البخاري في: 41 كتاب المزارعة: 18 باب ما كان من أصحاب النبي صلی اللہ علیہ وسلم يواسي بعضهم بعضًا في الزراعة والثمرة»
Brief Explanation
The gist of the hadith is that Abdullah ibn Umar (radi Allahu anhuma) rejected and denied the generalization made by Rafi‘ ibn Khadij, who used to say that it is prohibited to lease out land. Ibn Umar states that the prohibition was only in the case where people would stipulate a corrupt and invalid condition: that the crops on the water channels, the edges, or the area near the stream would belong to the owner, which was unknown and uncertain. Sometimes a calamity would befall the stipulated portion, and sometimes a disease would descend upon the share of the cultivator, causing loss to one of the parties. Therefore, it was prohibited. Otherwise, giving land for sharecropping (muzara‘ah) or leasing it out for a fixed and specified portion of the produce is permissible. (Murattib rahimahullah)