He—may Allah have mercy on him—was asked:
A man holds a land grant from the ruler and has arranged for a farmer to cultivate it in return for half the crop. Is it permissible to have their agreement witnessed? Some accredited witnesses have refused to witness it. If he also stipulates that the farmer provide chickens, pieces of cloth, or other such goods, with the farmer’s consent, is this permissible or not?
He answered:
Praise be to Allah. The scholars hold two views concerning entrusting land—whether privately owned, held as a grant, or otherwise—to someone who cultivates it in return for half the crop. However, the unquestionably correct view is that this is permissible. This was the consensus of the Companions: the households of Abū Bakr, Umar and Alī, Abdullah ibn Mas‘ūd, Sa‘d ibn Abī Waqqās, and others. It has also been the practice of the Muslims since the time of their Prophet.
The Messenger—may Allah bless him and grant him peace—did not prohibit this. Rather, he prohibited stipulating that the landholder receive the crop from a particular plot. Indeed, he contracted with the people of Khaybar for half of the fruit and crops it produced. An authentic hadith establishes that he stipulated that they cultivate it at their own expense. Thus, the correct view is that this arrangement is permissible even when the cultivator supplies the seed; indeed,