Fields precision leveled to a zero grade require significantly less applied water and provide significant savings in annual production expenses relative to contour levee rice fields. However, zero-grade is a land improvement and requires a large initial capital investment. This study uses a Net Present Value (NPV) approach to evaluate the monetary benefits of zero-grade rice production for tenants and landlords under alternative rental arrangements. Results indicate both parties can gain positive monetary benefits under most lease structures in the long run but may experience short run monetary losses if yields decline during the initial years after the land improvement.