All perfect praise be to Allah, The Lord of The Worlds, and may His peace and blessings be upon our Prophet Mohammad and upon all his family and companions.
Muslim jurists believe that ownership of wealth is what makes Zakah obligatory, thus Zakah of agricultural produce is to be paid by the owner. Moreover, the obligation to pay Zakah in light of the agreements reached between farmers and land owners should be as follows:
In a Muzaraa`h {Sharecropping} contract between the owner of the land and the farmer, whereby both parties agree to get a certain percentage from the produce, the farmer becomes an owner once the fruits come out, so each of them is obliged to pay the Zakah due on their share.
Al-Imam An-Nawawi said, " In our Madhab(The Shafii school of thought), the farmer/worker owns his share once the fruits come out."{Rawdat At-Talibeen , 5/160}. In an Ijarah {Hiring} contract whereby the owner of the land hires the farmer to cultivate his land in return for a fixed sum of money, no Zakah is due on the farmer; rather, the owner is obliged to pay it in accordance with the land`s produce. In a lease transaction whereby the farmer rents the land for cultivation, he is obliged to pay the Zakah due on that land`s produce. Al-imam Ar-Rummli stated, "If a person rents a land and sows his seeds in it, then the crop is his and he is obliged to pay the Zakah due on it." {Nehayat Al-Mohtajj(3/71)}.
In conclusion, In a Muzaraa`h contract, Zakah is due on the farmer and the owner of the land, each according to their share. However, when the land owner hires the farmer to cultivate his land in return for a fixed sum of money, Zakah is due on the land owner; whereas, when the farmer rents the land from its owner, Zakah is due on him (Farmer). And Allah knows best.