Is a loan considered Islamic if a merchant grants a loan without interest in exchange for obtaining the agricultural produce of a land for five years, with the possibility of extending the period if the loan is not repaid? If not, what is the correct Islamic way to grant a loan in exchange for agricultural land?

This loan is prohibited by the consensus of scholars because stipulating an increase in the repayment of a loan to the lender invalidates the loan contract, whether the increase is in quantity, quality, or benefit. Every loan that draws a benefit is usury (riba). Jurists have based this on the premise that the purpose of a loan contract is to show kindness and seek closeness (to Allah). If an increase is stipulated therein, it deviates from its purpose, and because the stipulated increase resembles usury. The Islamic method for granting a loan in exchange for agricultural land is through lawful mortgage (rahn shar'i) or forward buying (salam).