I have some agricultural tract of land. Since I am unable to look after it due to my other engagements, I would like to give that land on rent to someone who is able and willing to use that land and harvest some crops on it. Can you please help me identify Halal ways of doing so. Can I simply give him the land on pre-agreed terms. Like for example, can I give a person the land on rent for him to use it for harvest for a fixed period of time and receive a fixed advance amount from him in CASH. Or do I need to receive some portion of the ‘crop’? What if the person who would harvest it, suffers a loss due to some natural calamity? For example, if we decided upon some cash amount, some in advance and the rest upon the harvest. In the course of this transaction, if the desired output is not achieved due to some natural calamity, can I still claim the rest of the amount in cash upon which we had already agreed? Would the ruling be same if the loss has been incurred due to either the negligence of the harvester or due to his lack of know-how?
Since you are unable to derive any financial benefit from your land then it will be best for you to lease the land on the basis of a fixed period and appropriate rental to someone who will utilize the land for agriculture and harvest. In this case it will also be correct for you to ask the lessee to pay the rent in advance. However, in this case you will not be entitled to any share of the profits from the harvest. By adopting this Halaal method you will not be exposed to any financial risk because in any case, whether the lessee profits or not, you will still too be entitled to your rent. (Raddul Muhtaar, Vol. 5, Page 7, Hidayah, Vol. 3, Page 294)
and Allah Ta’ala Knows Best
Mufti Muhammad Ashraf
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