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Illinois | Yes, it is simple for you and your grandfather to jointly rent the farm you mention. I would not create a formal partnership. You can work together and do everything else together that constitutes a partnership, but leave the financial aspect of it separate. You pay half the inputs and receive half of the tenant's share of the crop. This method helps to prevent any issues that may arise with any other siblings or heirs, and it also gives you responsibility of learning the management and risks that go along with it.
Assuming your granfather has the equipment, do as suggested before. Pay him a custom rate for its use on your half of the land, and he pays you labor. If he wants to allow you to use his equipment for nothing and wants you to contribute your labor in exchange, that is up to you guys.
Please realize that the profit party in grain farming is coming to an end. Don't expect to make the kind of money that has been made in recent years.
Keep off-farm employment, budget wisely, operate conservatively, and you will be fine. | |
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Help with starting a farm partnership. Please and thank you.
