Demai, Chapter 6, Mishnah 5. This mishnah also deals with a Jewish sharecropper who receives produce from an owner who is a kohen or a Levi, under an agreement to divide the yield by percentages. Here, however, we are not speaking of receiving land and working a field, but of receiving olives in order to press them into oil.
The text of the mishnah:
"HaMekabel zeisim l'shemen - k'shem shecholkin b'chullin kach cholkin biTerumah" - when the sharecropper does not receive a field to work, but rather receives the olives of the grove in order to turn them into oil, the Terumah is divided in exactly the same way that the ordinary produce is divided.
The first Tanna is teaching something new here, in contrast to the previous mishnah. In the previous mishnah, when the sharecropper receives land from a kohen or a Levi, the understanding is that the kohen or Levi acquires all the Terumah and tithes contained in the produce. But in our case, where the sharecropper receives no land, only the job of processing the olives and turning them into oil, he has not given up his share in the Terumah and the tithes:
The sharecropper's share: The Terumah and tithes within his portion remain in his hands, and he is entitled to give them to any kohen or Levi he wishes.
The owner's share: The percentage that goes to the owner naturally remains his, including the Terumah and tithes within his portion.
The result is that the Terumah and tithes are divided between them equally, unlike the previous mishnah, where the sharecropper received land and therefore everything goes to the owner.
The opinion of Rabbi Yehudah:
"Rabbi Yehudah omer: Yisrael shekibel miKohen umiLevi zeisim l'shemen b'machatzis sachar - hama'asros lab'alim" - Rabbi Yehudah disagrees and holds that this case is identical in law to the case of the previous mishnah.
Two cases are included in his statement:
A Jew who received olives for oil from a kohen or a Levi - in order to turn them into oil.
A case of half the profits - a similar case, except that here the sharecropper is also involved in the business side: he sells the oil, and the profits are divided between them.
In both of these cases, even though no land is involved, Rabbi Yehudah holds that the tithes belong to the owner - all the Terumah and tithes go to the owner who is a kohen or a Levi, since the understanding is that the owner is the one who retains all the Terumah and tithes.
In summary: In this mishnah the Tannaim disagree about one who receives olives for oil from a kohen or a Levi, without receiving any land. According to the first Tanna, since no land is being received here, the sharecropper has not given up his share, and the Terumah and tithes are divided between them just as the ordinary produce is divided, and the sharecropper may give his portion to any kohen or Levi he wishes. According to Rabbi Yehudah, both in the case of olives for oil and in the case of half the profits, where the sharecropper takes part in the sale and the profits as well, all the tithes belong to the owner.