Rental agreements and resource contributions on irrigation leases, Caddo County, Oklahoma

Abstract

Scope and Method of Study: Tenancy on irrigation farms has become an important tenure group in those areas of Oklahoma where irrigation has developed. Although irrigation is not generally practiced throughout the State, the findings of this study will have application to all irrigation areas. Fifteen non-related tenants were interviewed for information relative to their lease arrangements, the quantity and quality of resources used and the provisions of the leases for sharing those costs associated with developing the ground water resources and the operation of the irrigation installation. The analyses were limited to a comparison of the results of the different lease arrangements on resources used and measuring the equitableness of the different type of leases.

Findings and Conclusions: The fifteen irrigation leases were about equal: divided into two groups. Eight of the leases retained the customary 25 per cent dryland peanut and cotton rental arrangements, in which the lessees and lessors shared most phases of operating expenses. The lessees contributed from 50 to 90 per cent of the investment capital on these leases. Since a large share of the annual investment costs were assumed by the lessees on these leases their contributions exceeded their proportion of receipts. The other seven leases were for 40 and 50 per cent of the peanut crop rental and various proportions of the cotton produced. The lessors made contributions equivalent to 60 per cent and received only 40 per cent of the returns. The irrigation resources were used less extensively on these farms.