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Crop share arrangement, I'm the LL
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HoRFarms
Posted 3/2/2024 12:50 (#10648293 - in reply to #10648041)
Subject: RE: Crop share arrangement, I'm the LL


SE VA/NE NC
Zooks4Life - 3/2/2024 11:02

New to the forum thanks for letting me join. It appears this is the correct section to solicit some input on this topic.

We have done a 1/3-2/3 crop share with our tenant on our home property for the last 25 years. We pay ag line 100%, taxes 100%, 1/3 fertilizer and receive 1/3 of the crop proceeds. (Gov payments also split 1/3-2/3)

My wife recently was turned over (given) some property that is on the other side of town.

1/3-2/3 arrangement also EXCEPT that the tenant is splitting the spraying bill (herbicide, insecticide) bill and sending 1/3 of that to her to pay.

How typical is this arrangement? Seems really good for the tenant. This arrangement has been in place with her parents that maybe weren't as savvy?


Thoughts please or further questions of me?


We are low ph ground, we would need .5tons every year to maintain. Lime is $62/ton here right now. So keep that in mind with my response.

I have quite a bit of crop rent ground. We used to do it exactly like your first scenario but i didnt like a couple things about it. Could have a great year but that was a big lime year and landlord didnt feel like it was great. Also seed cost has gotten to be a much more major expense vs pre RR cheap or saved seed.

So i converted all of my landlords to 1/3 lime, 1/3 fert, 1/3 seed. The added 1/3 of seed pays levels off the larger single year hits they took with larger lime applications. Overall i think i make out a little better than the landlord long term money wise, but the checks are less variable and better reflect the crop grown. I considered asking for 1/3 chems too, but it sounded like a nightmare to track and wouldve put the landlords losing out too much vs the old method.

I have never heard of landlord paying any application costs, be in ground or air. Even when they paid 100% of lime, it was farmers responsibility to apply. Its not the landlords fault the farmer isnt equipped to spray for themselves…in fact, in this scenario it incentivizes the farmer to never own a sprayer.

Edited by HoRFarms 3/2/2024 12:53
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