Posted 5/23/2020 08:56 (#8274928 - in reply to #8274629) Subject: RE: Son statrting farming
My advice: Treat this like any other business venture, right off the bat. Keep track of all labor, equipment rental, fuel used, storage fees, grain drying charges, etc. At the end of the year, have a settlement. Do it quarterly, if you prefer. Agree on using your state's custom rates -- or 80% of custom rates. Whatever you both agree will be fair.
I would advise against the "easy way" of trading labor for machinery and the like. It may be close enough to equitable for now -- but what if you son rents another 500 acres next year?
Get started off on the right foot and save hard feelings later.