Property Letting Articles

3. Produce Rents.
We come now to the third method of fixing rents. In it the rent is rated hi specified quantities of produce, usually made convertible into money at the ordinary prices of the day. And, though not free from defects, this seems, on the whole, to be the least exceptionable plan hitherto proposed. It affords the best attainable security against changes in the value of the currency, and it neither clamps the tenant's exertions, nor thwarts the progress of his improvements ; for he knows that every bushel of corn he can raise beyond the fixed quantity payable to the landlord is entirely his own. It is defective, however, inasmuch as it imposes on the farmer the necessity of paying more than the fair value of his farm in unfavourable years ; while, in favourable years, the landlord gets less rent than he ought to receive. But it is difficult or rather, perhaps, impracticable under any system, wholly to obviate the effect of these disturbing causes.

We are, however, inclined to think, that under the free system now adopted in regard to the corn trade, the disturbances referred to will be comparatively unimportant ; for it is no longer reasonable, seeing the immense variety of markets to which recourse may be had, to suppose that the fluctuations in our harvests should exercise anything like their former influence over prices. It is doubtful, therefore, whether it be really worthwhile to set about organising any scheme for obviating or lessening the influence of such inconsiderable oscillations. But if this should be thought desirable, it may easily be accomplished by fixing maximum and minimum prices; it being declared in the lease, that the produce payable to the landlord shall be converted into money, according to the current prices of the year; but that, in the event of their rising above the maximum fixed in the lease, the landlord shall have no claim to such excess of price.

By means of this check, the tenant is protected from paying any very considerable excess of rent in scarce years. On the other hand, to prevent the rent from being improperly reduced in unusually plentiful years, a minimum price is agreed upon, and it is stipulated, that to whatever extent prices may sink below its amount, the landlord shall be entitled to receive the minimum price for the produce payable as rent. With a free trade in corn, and a system of this sort, rents would fluctuate very little indeed, and landlords and tenants would enjoy the highest degree of security. We may add that this is not a mere speculative opinion. The plan now proposed was extensively introduced many years ago, into sundry well cultivated districts, including East Lothian and Berwickshire. And the experience of the estates in which it has been adopted, has shown that it is as effectual as can well be desired, for the protection of both parties, and for securing the progress of improvement.