Amr bin Dinar (may Allah have mercy on him) said: I said to Tawus (may Allah have mercy on him): If only you would give up mukhabarah, for they claim that the Prophet (peace and blessings be upon him) forbade it. Tawus said: O Amr, I give (land) to them and help them, and the most knowledgeable of them, Sayyiduna Ibn Abbas (may Allah be pleased with them both), told me that the Prophet (peace and blessings be upon him) did not forbid it, but rather said: "That one of you grants (land) to his brother is better for him than taking a fixed rent for it."
Hadith Referenceالسنن الكبرى للبيهقي / كتاب المزارعة / 11734