Liability for self-employment tax is clear if land is rented under a cash-rent or non-material participation share lease—no SE tax is due. On the other hand, if land is rented under a material participation share lease, self-employment tax is due. However, if some land is rented under a cash rent or non-material participation share lease, and other land is operated (or rented under a material participation share lease), the outcome is less clear.
Harl, Neil E.
"SE Tax On Rented Land if Some Land is Not Rented,"
Agricultural Law Digest: Vol. 14
, Article 1.
Available at: http://lib.dr.iastate.edu/aglawdigest/vol14/iss5/1