Shares on row crop

Reid1650 · Nov 19, 2009

Ive got a 500 acre farm I picked up. He wants to go 60%(me)/40%(him) on rounds. I will be using all my equipment and be putting the hay in the barn. He doesnt own the land, he is just the farm manager and owners live in FL and have nothing to do with the farm. If I do squares I will be wanting to go 70/30 do you think this is fair? As he doesnt own the land and will not have any part in fuel/labor/or equipment? I am also going to crop some of the ground and wanted to go 70/30 with him seeing as I am paying equipment costs, seed costs, spray cost, combine and haul cost, etc. What do yall think??

ben brown · Nov 19, 2009

one thing i would do is make my deal with the guy who owns the land make sure the guys not saleing something thats is not his,had that happen to me once or some tobacco i though i had leased come to find out the manager didn't have permision to lease it out.

ChrisinMO · Nov 19, 2009

He's got absolutely no risk at all. Why should he get 60%? I personally wouldn't do it. Now if the split was 60/40 the other way, that might be another story.

Christopher

Anonymous-0 · Nov 19, 2009

A talk with the real owners could be a good thing. It could either keep the deal between you and them as it should be or possible uncover an under the table deal that the guy is doing that could come back and bite you. In the latter case, you could end up with the farm management job.

Dave

Reid1650 · Nov 19, 2009

Chris the 60 percent is mine the 40 percent is his

ChrisinMO · Nov 19, 2009

Sorry, I don't know how I misread that.

Christopher

LAA · Nov 20, 2009

I would not go 60/40 unless he was paying all the fertilizer and doing it to test. I wouldn"t go within 50 miles of a deal that the actual owner was not onboard with or a part of. I don"t think you will find many people who own 500 acres of tillable land that do not expect some return. These deals where one party has nothing to lose sour pretty quick, your not in business to make this guy money.

Ron in NS · Nov 20, 2009

Sounds like you've got all the risk and labor, and he's sitting back collecting 30% for squat.
Hmmm sounds like he's racketeering to me.

Anonymous-0 · Nov 20, 2009

(quoted from post at 04:33:57 11/20/09) Sounds like you've got all the risk and labor, and he's sitting back collecting 30% for squat.
Hmmm sounds like he's racketeering to me.

Let's say, you get all work done except for the harvest machines showing up (or everything is harvested and you're waiting on a check). Real owner shows up and says"who gave you permission? Where's my signature? You were on private property. Nice gift though, just make the check out to me, or my "manager" will take care of the harvest".

DAVE

brian(MN) · Nov 20, 2009

I have some crop land on 60/40 shares. Works great for me. Owner pays his share of seed , fertilzer, chemical. This one has a farm manager? I wonder what his cut is? I wonder if he has a deal with the owner, maybe cash rent, and he is turning around and crop sharing it to you. Better invistagate further, you know the government will want to know. Don't sign anything until you know every detail here.
Brian(MN)

BigMarvinGa · Nov 20, 2009

TALK TO THE OWNERS because you could have all that time and money invested and then they decide to sell ? manager makes another deal ? manager not legally in a position to make a deal ?

Anonymous-0 · Nov 20, 2009

on a 2/5-3/5 lease owner pays 40% of seed, fert. and chem., labor is not included, 2/3-1/3 lease renter pays all expenses, owner gets 1/3 of the crop, on hay we figure 50/50 for alfalfa and 1/3-2/3 for grass hay.I have rented from farm managers before, not uncommon, make sure your written lease has all the terms in print including agreeing to pay their share and you should be covered assuming the farm manager is from a recognized business. With todays yields and prices share rent is expensive but they share some of the risk.

El Toro · Nov 20, 2009

I would talk to a lawyer before you get involved.
The farm manager seems to be getting the best deal. Some of the other posts have raised some very good issues with this. Hal

Cas · Nov 20, 2009

Wait a minute, you are dealing with someone who
does not have a nickel invested in this deal.
What if he walks in the middle of the season.
What about government payments(if there are any).
A lot of details have to be worked out to even
consider this.

Joe in Neb · Nov 20, 2009

Thats a pretty common split around here and I have and my friends have many times dealt with farm managment companys Ie farm managers. The way they work here is that owners pay 40% of fertilizer and chemical. You pay seed and all labor. Hay is 50/50. Works fine around here and fairly common. Lots of times the managers do it at 50/50 on crops here. It should not be a problem for him to let you know the owners names and they will also sign any contract you make. I can say if you make to much fuss you won't be farming it next year though. They allways have several people willing to step into your shoes.

Erik Ks farmer · Nov 20, 2009

I'm with the other fellas, as that deal is outlined, 70/30 is the appropriate rent agreement. But I would not sign a deal with a farm manager unless the owners were present.

Anonymous-0 · Nov 20, 2009

I have a lease on my land that is 50/50. I pay half the seed, fertilizer, and herbicide. The renter does all the work. I get half the crop. I do my own crop selling. We discuss fertilization rates and seed selection.

Gerald J.

Shares on row crop

Reid1650

Member

ben brown

Member

ChrisinMO

Member

Anonymous-0

Well-known Member

Reid1650

Member

ChrisinMO

Member

LAA

Well-known Member

Ron in NS

Well-known Member

Anonymous-0

Well-known Member

brian(MN)

Member

BigMarvinGa

Member

Anonymous-0

Well-known Member

El Toro

Well-known Member

Cas

Well-known Member

Joe in Neb

Member

Erik Ks farmer

Well-known Member

Anonymous-0

Well-known Member

Similar threads