The rationality for interlinkages between land and labor contracts, where rent is paid in labor services, is explored. These contracts emerge in a structural context of large farms and dualism when there is either a risk of default on rents, involuntary unemployment, or costly transactions costs on the labor market. The resulting size of land plots leased is analyzed with Chilean data. Reforming these contracts without transforming the causes of their existence has led to efficiency and welfare losses.