Suppose a farmer wants to design a contract to induce a seasonal worker to exert effort. Harvest is given by y=e+ , where N(0,2) and e denotes the worker's level of effort. While the farmer is assumed risk neutral, the worker has CARA preferences given by u(w,e)=er(w(e)) , where w is the amount of monetary compensation, r the Arrow-Pratt coefficient of absolute risk aversion, and (e)=ce2/2 the cost of effort. The worker's reservation utility is u(w) . The sharecropping contract offered by the farmer to the worker is of the form w=t+sy , where t is the fixed transfer level and s is the variable, performance-based component of compensation. Find the optimal contract when the farmer cannot verify the worker's effort.