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Implement Alley Discussion Forum

Question on hay shares - plant and harvest

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Joe in IN

10-03-2006 17:35:57




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Neighbor bought 10 acres has been fallow for 3 years+. Approached me about planting hay(grass/alfalfa) and baling. They only have two horses and I already bale about 2 acres for their horses. So they do not need the hay.

What is a good deal(for me) but fair. Is offering my time and tractor for planting, they buy seed and fertilize and then a 60/40 split ok? not sure what they would do with the hay though? What about a percentage of my gross(obviously they would have to trust me)?

I really do not have the time to take on 10 more acres so I would pay a couple neighbor boys to help me cut, ted, rake and bale.

I like the idea of free hay ground even with a split. Seems like a winner to me.

FYI I am in West Lafayette(north-central) Indiana

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Rauville

10-04-2006 05:48:57




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 Re: Question on hay shares - plant and harvest in reply to Joe in IN, 10-03-2006 17:35:57  
In our case, we have an agreement with a local operator that puts up hay on our remote "farm". We intially pay for the seed and fertilzer, and he prepares the alfalfa ground. He has the use of our tractors and equipment to supplement his own.
We split the crop 50-50, and he buys back whatever we don't need. This year we ended up with about 250 extra big rounds.



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Nebraska Cowman

10-04-2006 05:17:16




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 Re: Question on hay shares - plant and harvest in reply to Joe in IN, 10-03-2006 17:35:57  
With the extra expence of seeding + the reduced yeld, I'd want the whole crop the first year. Then probably half after that. How long can it take to do 10 acres? Then I guess the other consideration is what he is going to do with his share? Does he have a barn to store it in? Will you have to put his share in the barn? Or can you just buy his share? Where I put up large round bales, I move the land owners share off the field but that is it. If you have to do much hand labor you are going to need a bigger share.

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Thack

10-03-2006 22:36:38




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 Re: Question on hay shares - plant and harvest in reply to Joe in IN, 10-03-2006 17:35:57  
I live a little south of you, I'd go 50/50 across the board.

Another thing to consider, corn follows alfalfa...know what I mean?



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old

10-03-2006 21:19:16




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 Re: Question on hay shares - plant and harvest in reply to Joe in IN, 10-03-2006 17:35:57  
In my area they set it up 2/3-1/3 for hay cutting/baleing but thats also a field ready to be cut. No seeding etc. So the guy would need to do his part as far as seeding etc to even do it 2/3-1/3 you getting the 2/3



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kyhayman

10-03-2006 21:01:23




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 Re: Question on hay shares - plant and harvest in reply to Joe in IN, 10-03-2006 17:35:57  
Tough call, if you dont need it, dont have time to do it then its probably not a good deal at any price. If, on the other hand it means losing a customer b/c someone else agrees to do it all, then you may come out behind.

Here, they furnish seed, fert, lime. You furnish equip and fuel. 50/50 split, their half on the ground, if you establish it, you got it for 5 years, and they fertilize to soil test annually.

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Jossette

10-03-2006 17:47:31




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 Re: Question on hay shares - plant and harvest in reply to Joe in IN, 10-03-2006 17:35:57  
Maybe letting him know, what it will cost for the alfalfa seed , digging and planting, will steer him away. Not cheap at all for 10 acres.



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