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Sharing center pivot with neighbor
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Mike SE IL
Posted 12/5/2012 02:21 (#2733671 - in reply to #2731504)
Subject: RE: Sharing center pivot with neighbor



West Union, Illinois

There are as many ways of doing it as there are people.  I have one pivot that originally was owned by all three landowners involved. Ownership and expenses were shared proportionally.  That requires a very special relationship to work.  The biggest problem is someone needs to be in charge, not three.

I know of another shared system owned by the owner of one 80 and the tenant of the adjacent 80.  The tenant has a long termshare crop lease.  The expenses are shared 50/50 and the share crop landowner pays a proportional custom rate.

I have a  system the neighbor pays a per hour rate for the time it is on him.  I have one field I buy water from the neighbor based on the application rate.

It is whatever the parties involved agree to. So to better answer your questions

how were the costs split for installation, well, pivot, 3 phase etc?
In the first exmple everything was shared proportionally.  I know of one case where the entire cost is crried by the tenant, but if the loses the lease the landowner has to repay him an amount pro-rated over 15 years. Sometimes the entire system cost is born by the landowner but the tenant pays all operating expense.
Did you have any legal agreements in place
EVERYTHING needs thought through and spelled out in a signed legal document.  Who owns what? Who is responsible for what? What if one of the parties dies or sells out? ALL this stuff needs thought through, spelled out, and signed by everyone. I mentioned "the tenant pays all operating expense".  Define operating expense. With rights there are responsibilities and all need thought through before hand.



Edited by Mike SE IL 12/5/2012 04:03
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