Splitting money

Barker Farm · May 20, 2010

Right now my inlaws have around 60acres we use for crop. The neighbor plants/sprays/harvest.

They get 1/3 at harvest and he gets 2/3, whatever the going price is. Is this about normal?

Now if I was to plant and spray, would it need to be 1/3, 1/3, 1/3 - planter, harvester, landowner?

We have the equipment at our place to plant, fertilize, and spray. Just no combine and no interest in buying one.

Anonymous-0 · May 20, 2010

If they don't pay for any of the direct costs such as seed, fertilizer, pesticides, then I would consider it a good land owner agreement. In this scenario as the tenant getting 2/3, I wouldn't be willing to pay all the expenses and give you 1/3 for planting and spraying. For share cropping in this area they split expenses 50/50 and each get 50% of the crop. I've heard some areas that the owner is responsible for 50% of the direct costs and also pays for his combining/hauling to get 50%. I would never agree to that arrangement. Basically you are giving the tenant 1/2 of you land for only planting and spraying. If this was the only option I would have everything possible in CRP.

paul · May 21, 2010

That's a tough way, who's in control then, who pays fert & seed & herbicide costs? The land owner has to be actively farming it then making the decisions, and should get a bigger share. The planter & harvestor are just hired tools, and get a per-acre rate whatever is average for the area.

I'd think harvesting would end up with a bigger pay than planting. But the person footing the bills and making the decisions should get a bigger share, & only way that works is if it's the landowner in this case?

A three way split just doesn't work out for me, how do the costs get split then?

--->Paul

Mike Aylward · May 21, 2010

I would think the best way to handle this would be for you to charge a custom rate for the operations you do and being the current tenant is supposed to do the machinery operations for his share of the crop he would be the one to pay you. You are doing his work and are entitled to custom rate compensation. Mike

Anonymous-0 · May 22, 2010

To speak of the 50-50+ cost,James,when or if you have to do the landlords harvest seperate from yours,then he pays for the extra effort and equip. expenses that are needed. There are alot of cases that this is happening.

Anonymous-0 · May 22, 2010

Certainly can't disagree because all the arrangements I've seen or been associated, the land owners and tenant have the same crop or crops which are removed at the same time.

Anonymous-0 · May 22, 2010

same crops,but has tobe kept seperate or stored or whatever at harvest plus shelled vs ear at harvest,beans-wheat weighted by loads if one stored and one sold or both stored.Rich owners or farm mangers farms with own bins ETC or their own needs.

Splitting money

Barker Farm

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paul

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Mike Aylward

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Anonymous-0

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