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NE Indiana | Example 80 Acres Corn
40 acres tenant 40 acres landowner
We will pay $4000.00 rent for our half of the 80 acres
We will supply all labor, and application cost on fertilizer and herbicides
Seed $100.00 per acre $50.00 landowner $50.00 tenant
Fertilizer $200 per acre $100.00 landowner $100.00 tenant
Herbicides $40 per acre $20. Landowner $20 tenant
Farm Average 180 bushels per acre Corn selling price $3.50 per bushel
Tenant pays landowner 4000+half the grain sold totaling $29200
Landowner expenses would be $13600.00 Net income of $15600.00 or 195 per acre. This is just an example with averages, costs each year would be different
Tenant would have invested $17,600 with a net income of $7,600 or $95 per acre of total acres or 190 per acre of actual half of acres that had expenses on.
Honestly that is pretty close to our actual expenses this year to put out the crop not including labor or trucking or storage or drying But those are expenses that are there weather the land is cash rent or 50/50
There it is on paper explain to me where I went wrong.
Edited by kgbarnett22 1/6/2016 09:15
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Is this 50/50 lease fair?
