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| I am getting older. Some work is not as easy. So hiring, justifying the higher quality soybean planter with full GPS, every row shut off, bulk seed, scale… makes cost almost a non issue. *this years mistakes almost make me question that* but another time I might talk about that. ;)
Today. Young neighbor starting farming, working job on side as much as he can… getting married, more of his family land coming out of CRP…. I have hired him to plant my corn last few years. 7100 6 row. He went thru 5 years ago, almost rebuild.
So he plants around 100 acres of corn for me. Up to $25 acre this year. No fertilizer, GPS, row shutters offs…
He wants a bigger tractor, and a 12 row folding planter *possibly JD 1760*
But age old issue. Buying even decent used 140hp FWA tractor, and decent 12 row planter, AND getting into autosteer accurate enough for planting a bit steep.
I sold some land this year. So talking with wife about suggesting. I buy the planter. 100%. He buys tractor, gps, whatever. He uses my planter for both of our corn crops. I get *charged* $20 per acre. That used to pay off planter.
My thinking *assuming $20k for planter* if he could get a loan costing 5% compounded annually. *right*
12 year repayment would be $2256.51 a year. So almost exactly what he would be *paying* me in labor. After about (+ or -)12 years the planter is 100% his.
I get tax break, he does not need to borrow more. I get continued planting with better planter. *one he likes has row cleaners, E-seed something, I think it has ability to shut off either side, but not every row. Not a huge deal.
Does that sound fair? Is everyone protected? If I decide I must retire in 4 years. He can either continue to pay off balance. Or if not, I pay back what his labor covered, sell it at auction..
Other issues? Is $20 too low? I will post most basic loan calculator info.
Last one calculated monthly.
Edited by Larry_minn 5/15/2025 00:16
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Corn planter arrangement. Opinion if fair to both parties.
