Leasing of agricultural land is gaining in importance in North America. The impact of leasing on soil management practices is examined in an area in the Canadan province of Ontario. Prevailing land contracts are insecure and the rental land market appears to be imperfect in the area. Under these conditions leasing leads to undesirable soil management practices and consequently to a lower state of conservation and to lower crop productivity over time. A difference in soil management and crop productivity has been observed between owner-operated and rented land.