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NE Kansas | what is normally included on this share rent? Are seed or harvest costs normally shared? |
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20 Miles West of Indianapolis Indiana | Land lord and farmer share expenses such as seed chemicals fertilizer nitrogen, crop insurance is an individual choice between land lord and farmer.
Farmer provides all equipment and labor.
To answer your question the harvest cost would the the liability of the farmer.
Every arrangement can be modified to be mutually benifitial to each party.
One arrangement I have with a 50-50 land lord is I will either do the work myself, or pay for installation of drainage tile if the land lord will pay for the tile |
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| pwrcat - 2/4/2017 12:30
what is normally included on this share rent? Are seed or harvest costs normally shared?
The farmer going broke! |
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Baldwin City, KS | I had a landlord approach me about 50/50 on some ground I was custom farming for them, but they wanted to have us start farming it. They were going to pay for half of about any expense you could think of including planting, harvesting etc. Sometimes I wondered if I should have tried it, but I ended up talking them into cash rent. I have some 60/40 where landlord pays seed and chem just like the 1/3 2/3 shares and it gets a little lean IMO. A 50/50 like that would probably be a loss. |
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Floyd County, Iowa | SamT - 2/4/2017 12:43
pwrcat - 2/4/2017 12:30
what is normally included on this share rent? Are seed or harvest costs normally shared?
The farmer going broke!
Disagree. Would like to find landlords that would go back to 50/50. Made more that way than cash rent.
To the OP- Landlord supplies the land, and half of the fertilizer (product only), seed, chemicals (product only).
Tenant supplies all labor, equipment, fuel, and any other costs to prepare seedbed, plant, fertilize, control weeds, raise the crop, harvest the crop, and deliver the landlord's half to market or storage facility determined in the lease.
Each party gets half of the crop, and supplies his own insurance (crop and otherwise).
Gov't payments as per lease negotiations, as well as any other negotiated terms (fence, tile, mowing ditches, etc).
Here, lime is prorated- tenant pays for his half of it, and if lease is terminated before the prorate period, landlord reimburses tenant for unused portion. |
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| Wow you guys have some very kind landlords! 50/50 share rent here is done by land Lord getting 50% of crop and tenant getting all expense and 50% of the crop. |
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SW Iowa | 50% shared on everything except machine cost-labor. Since we have COOP spray and spread fertilizer, I pay for all applications costs. Love the arrangement, been very profitable compared to rented ground in the tighter years. Wish I had more this way. |
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Eastern Half of Kansas | The 50/50 deals in Kansas from what I've heard are usually around irrigation, either kaw bottom or aquifer water. I haven't heard much upland. But maybe it's common in brown and donaphian |
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Central Ohio | We have probably 50-60% of our rented ground in 50/50 share crop arrangements with several different landlords. Land lords pay half of all agronomic inputs plus Supplies the land. Each gets half the crop.
In tight years, you make a lot more $ that way. In good years, you make less. It is a giant pain in some ways, figuring seed bills, Chem bills, not being able to store grain, etc. But it sure helps in tight years. Or on lower yielding or high risk farms. Overall, on average I think the land lord makes more coin than if it was cash rent.
Edited by jbweston 2/4/2017 15:16
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Floyd County, Iowa | bigcorn02 - 2/4/2017 14:01
Wow you guys have some very kind landlords! 50/50 share rent here is done by land Lord getting 50% of crop and tenant getting all expense and 50% of the crop.
Just where IS "here"??
Never heard of that on a 50/50 lease. I know you can draw up a lease with whatever terms you both agree to, but that's a new one on me.
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ne il | jbweston - 2/4/2017 03:14
We have probably 50-60% of our rented ground in 50/50 share crop arrangements with several different landlords. Land lords pay half of all agronomic inputs plus Supplies the land. Each gets half the crop.
In tight years, you make a lot more $ that way. In good years, you make less. It is a giant pain in some ways, figuring seed bills, Chem bills, not being able to store grain, etc. But it sure helps in tight years. Or on lower yielding or high risk farms. Overall, on average I think the land lord makes more coin than if it was cash rent.
The input issue described above can be remediated by having seed dealer,fert company,etc,etc. Split the bills 50/50. However if buying direct I understand your headaches.
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Floyd County, Iowa | Yup. With 50/50, the landlord can deduct a lot of things that he can't with cash rent.
Never had trouble with seed and chemicals. Just have dealers/suppliers split the bills. Half goes to me, half to landlord. They do the billing. |
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Roanoke, IN | Landlord probably owns/pays for irrigation. |
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S.E. South Dakota | When I rented on halfs seed,fert and chemical was all split. Had one landlord who paid for me for half the baling. Don't know why but he said he always got paid when he farmed. |
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East Central Kansas | Here, LL shares all agin omit cost plus harvest and hauling, sometimes application costs.
JAK |
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Columbia Basin, Ephrata, WA | Orfarmer - 2/4/2017 14:22
Landlord probably owns/pays for irrigation.
If the landlord also runs the irrigation, the farmer MIGHT not lose his donkey on the deal. He probably will though.
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| The standard 50/50 contract I found on line when I set mine up (its in year 9 now) I (landlord) pay half the cost of seed, fertilizer, and herbicides. I added to the contract that my tenant delivers my half the crop to the nearby elevator. My tenant does all the planning, shopping, and labor including hired hands. He also mows around the buildings occasionally. I do the merchandising of my share of the crop. Some of his vendors bill me direct, some he bills me.
So far I've made money every year. The great years I've made way more than I'd have dared ask for cash rent and in poor price years I've not got as much income as moderate cash rent, but I haven't put my tenant in the hole either.
Gerald J. |
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North of I64 south east il | In my opinion you are just wearing out your equipment for what to say you farm that much more acreage. |
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| Minnesota. This is dryland not irrigated either. |
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ncia | Don't have any anymore, but what I had in the past I paid all drying if landlord supplied the bins with dryer. Long time ago , had to pick landlords share in ear and put in his corn cribs and shell it. that was in the 80's.
Who gets what amounts of future farm program payments is also negotiable |
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Greenwood Mo | I share crop some of my ground I haveway more invested than the "farmer" on a 1/3 to 2/3 split after paying for 1/3 of the fertilizer I did not even make enough for the land payment.I dont think as the land owner I should be paying anything for fertilizer .I am going a differant direction .I would be money ahead to put it in grass and pasture it |
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South West Kansas | Would you care to elaborate a little more? How do u have more invested then your tenant? And I've never seen ground that can make its own payment when you get 100% of the shares let alone 1/3. |
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Missouri | "Here" on 50/50, the landlord pays for 50% of seed, fert, chem, and that includes application cost on the fert & chem. They also pay for 50% of the harvesting cost and trucking. It's a good deal for the farmer, but just like everywhere else, there are few share rent deals anymore that don't involve family. Most ground has gone to cash rent. |
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NW Central Ohio | ...When we rented from family on a 50-50 share rent basis...We provided tillage and planting..and they paid for their half of the harvesting. All the other agronomic costs were split down the middle. |
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Leesburg, Ohio | I don't agree with the logic that claims "wearing out equipment for what?"......
Either you rent a farm, or you don't. If you rent it, you either pay cash rent, or farm on shares.
If you farm on shares, you pay zero cash rent. Your labor and equipment earn the right to farm the land...the equipment and labor pays the "rent."
So, to claim you get nothing from the landlord's share of the land is false. And renting on the shares actually splits up.the risk more fairly than cash rent...the producer is on the hook for essentially ALL the yield/weather and price risk in cash rent. The landlord shares that risk in a share rental agreement. |
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SW Iowa | +1 |
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50/50 crop share?
