Allah the Almighty has mandated zakat on crops, as mentioned in His noble book: “O you who have believed, spend from the good things which you have earned and from that which We have produced for you from the earth.” This raises the question: Is zakat on crops obligatory on the owner of the crop, whether the land belongs to them or they are renting it?
In today’s article, we discuss the zakat on crops, its rulings, key details related to it, and finally, answer some common questions about this type of zakat.
Ruling on Zakat for Crops in Rented Land for Owner and Tenant
Scholars have differed on the issue of zakat on crops. Some, like the Hanafi school, have decreed its obligation on the farmer, allowing for zakat on the crop without the land.
Thus, zakat is permissible on the crop, where zakat is taken from the entire harvest if it reaches the nisab (minimum amount for zakat liability), which is five wasqs, equivalent to 657 kilograms.
Is Zakat Due on Rented Agricultural Land?
Yes, zakat is due on the income from renting agricultural land under the following conditions:
- If it reaches the nisab.
- A lunar year has passed.
- It is surplus to the needs of the zakat payer. Alternatively, one may combine their wealth and pay zakat on the total when zakat becomes obligatory on the original wealth.
Who is Responsible for Zakat on Rented Land for Agriculture?
For the resulting crop, if the landowner cultivates their land, the zakat on what it produces is their responsibility. If they rent it to another for cultivation, the zakat on the crop is the tenant’s responsibility.
As for the zakat on the land, if the rental income received by the landowner reaches the nisab, has passed a lunar year, and meets the conditions for zakat on wealth, the zakat is obligatory on the landowner if the income is surplus to their needs.
Nisab for Zakat on Rented Agricultural Land
If the land is intended for trade, zakat is due on its value annually. If the land is for agriculture, zakat is due on the produce, such as wheat, barley, millet, corn, and the like, and on the produce of palms or grapes if the harvest reaches the nisab.
The nisab for crops and fruits is one-tenth (10%) if watering costs nothing, and half of a tenth (5%) if there are watering costs. If no harvest reaches the nisab, no zakat is due.
Calculating Zakat on Crops for Owner and Tenant
Scholars have differed on whether the obligation of zakat on crops falls on the owner or the tenant. Allah the Almighty says: “Eat of their fruit when they ripen, but pay their due [zakat] on the day of their harvest.”
Since the tenant is the one who benefits from the fruits and crops, zakat is obligatory on them. If the harvest equals 612 kilograms:
- If watered by rain, one-tenth (10%) is due.
- If watered by machinery, “half of a tenth” (5%) is due.
Expenses are not deducted from the harvest before paying zakat.
The Prophet said: “For what is watered by the sky, rivers, and springs, or if it is rainfed, a tenth is due; and for what is watered by irrigation, half a tenth.”
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Through your donations, Masarat can continue its work to allow more deserving individuals from the affected and needy communities in Northern Syria to join and change their lives for the better.
Frequently Asked Questions about Zakat on Rented Agricultural Land
How to Calculate Zakat from the Income of Rented Agricultural Land
Zakat on the income from rented agricultural land can be calculated under the following conditions:
- If this income is surplus to the landowner’s needs.
- If a lunar year has passed since acquiring the income.
- If it reaches the nisab (minimum amount for zakat liability). Under these conditions, zakat on wealth is due, which is “a quarter of a tenth” or 2.5%.
If We Rent Out Agricultural Land, Is Zakat Due on It?
Yes, Islam obligates zakat on the income from rented agricultural land if the income is surplus to the needs and reaches the nisab.
Zakat on Rented Agricultural Land in Case of Loss
Zakat on crops is obligatory as long as the harvest exceeds 600 kilograms, regardless of whether it results in a loss or profit, as mentioned in the Hadith: “No charity is due on less than five wasqs.” Five wasqs are approximately 653 kilograms.
If 1000 kilograms were planted and the resulting harvest is 800 kilograms, zakat is due at “a tenth” if watered by rain, and “half a tenth” if watered by human effort.
Should We Pay Zakat on Agricultural Produce If Its Cost Equals the Production?
Yes, if the harvest reaches the nisab of five wasqs, equivalent to approximately 653 kilograms, zakat is due at 10% of the production if the crops were watered by rain, and 5% if watered by agricultural machinery or human effort.
Are Debts Deducted Before Paying Zakat on Crops?
Opinions vary regarding deducting debts from crops before paying zakat. Some scholars allow deducting agricultural costs only, others permit deducting all debts, while some suggest paying zakat first before deducting any debt.
The last opinion is considered the best, as the sacred traditions differentiate between crops watered by rain (requiring a tenth) and those watered by human effort and machinery (requiring half a tenth), indicating no debt deduction from zakat.
Are Plowing Expenses Deducted from Zakat on Crops?
The majority of scholars from the four jurisprudential schools suggest that expenses are not deducted from the harvest, and zakat is due on the entire amount.
Zakat on Inherited Agricultural Land
Land inherited and entering the ownership of the heir is not subject to zakat because the condition for zakat on land is the intention at the time of purchase to be for trade.
Ruling on Paying Zakat on Crops if There Was a Loss in Agriculture
There are two scenarios: First: If the crop is destroyed before zakat becomes due, i.e., before the fruit ripens, then no zakat is due on the crop owner. Second: If it is destroyed after being harvested and stored, zakat is still due, and it must be paid; otherwise, it remains a debt and a right to Allah.
Is It Permissible to Give Zakat to Someone Who Owns Agricultural Land?
Someone who possesses wealth that suffices them from asking others, such as a house for rent or land for sale or rent that meets their needs, is not considered eligible for zakat, and it is not permissible to give them zakat funds.
