Agricultural Land Leasing in Islam

Based on my reading, there is a difference of opinion regarding this practice of leasing. Some argue it is permissible, while others say it is not; it is unclear which view is more correct. However, according to an in-depth analysis by Jamaksari (2016), the group opposing it is actually a minority. I hesitate to draw a definitive conclusion because—compared to profit-sharing arrangements, for instance—references regarding land leasing in the history of Islamic society remain limited, as far as I have been able to find. God knows best.

Land is a crucial factor of production in the economy. For this reason, Islam rejects the concept of absolute land ownership akin to eigendom (permanent, unrestricted property rights). Given the finite nature of land, an individual who "controls" a plot of land is not permitted to leave it idle or uncultivated.

If the landowner is unable to cultivate the land personally—whether due to a lack of expertise or other reasons—they must entrust it to another person for cultivation. This cooperation can take the form of a lease (ijarah) or a profit-sharing arrangement (muzaarah).

Regarding land leasing in Islam, there are two differing opinions. According to Jamaksari (2016), those who permit land leasing include Imam Al-Shafi'i and the majority of scholars (jumhur), whereas those who prohibit it include Tawus, Abu Bakr bin Abdurrahman, and Ibn Hazm. In summary, scholars who permit the practice do so provided it adheres to the principle of public interest (maslahah) and involves payment in currency—such as money, dinars, dirhams, or other forms of value. Conversely, those who oppose it—such as Ibn Hazm—do so out of concern that one party might suffer a loss. Consequently, profit-sharing arrangements are often recommended as they are considered fairer to both parties.

The author notes that this divergence in opinion arises because proponents rely on the method of qiyas (analogy), whereas opponents base their position on the doctrine of nasikh-mansukh (abrogation). The qiyas method roughly means equalizing legal provisions between something that already has legal regulations and something else that has not yet been regulated by law. Meanwhile, nasikh massukh linguistically means removing, erasing, moving and writing. Presumably what this means is to eliminate the existing law with the arguments that come first with the arguments that come after. Wallahu a'lam...