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Zakah on crops, and whether or not the costs should be deducted from it

Question

What is the way to give Zakaah due on irrigated crops, in terms of its Nisaab and amount; and whether or not the expenses of cultivation, irrigation, fertilizers and harvesting should be deducted from it?

Answer

All perfect praise be to Allaah, The Lord of the Worlds. I testify that there is none worthy of worship except Allaah, and that Muhammad, sallallaahu ‘alayhi wa sallam, is His Slave and Messenger.

One-tenth the production should be given for Zakah on agricultural products and fruits. This is what is agreed upon regarding what is watered with rain or by water running on the ground, which does not require any expense in transportation.

As for what is irrigated using equipment or requires expenses in transportation, one-twentieth the production should be given for Zakah.

Scholars differ regarding the wages of workers on the farm, and the cost of sowing and fertilizers and so on, whether or not the owner of the farm should deduct the cost of production and then pay Zakah on whatever remains. Some scholars are of the opinion that one tenth or one twentieth - according to what has been clarified above – will be taken out of all the production and there is no consideration of other expenses on the farm; this is the opinion of the majority of scholars.

Other scholars are of the opinion that if the expenses of the farm are a loan, then the owner can take that out before calculating the one-tenth.

Ahmad said: “If someone took a loan for the expenses of his farm, and took a loan for the expenses of his family then he would count whatever he spent on the farm and not what he spent on his family.” This is the preponderant opinion.

Allaah Knows best.

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