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| I was approached a couple of years ago with a similar proposal. I think that's a bad idea. I don't like the idea of taking land that I worked hard to get and putting it in a pot to divide it up. That's a little too much like socialism for me. I'm more inclined to have a "going forward" starting point on splitting all new land acquisitions and input costs. The existing land holdings at the time the partnership is formed should be treated separately and custom rates should be charged to the respective operations if a joint effort was involved in field operations.
My suggestions are to keep the existing operations separate, don't sell machinery unless there are obvious duplicates or in the case of obsolescence. Any new land and associated input costs should be split 50/50 and custom rates should apply. The partners need to decide what equipment would make the combined force work in the most efficient way. As an example, one entity could purchase a 1990 CCS drill for 90K while the other entity could purchase a 1790 CCS planter for around 90K.
I have no problem coming up with a reasonable figure similar to elevator charges for grain systems either.
Partnerships are a tough deal. You really have to have a good give and take relationship with the right type of person and be able to get along with others.
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Partnerships
