Posted 5/23/2020 09:00 (#8274936 - in reply to #8274675) Subject: RE: Son statrting farming
Eastern South Dakota
Yes to this. That is how I got started with my dad. We were financially separate in all inputs for land that he farmed and the new land that I farmed but I used his equipment and he got my labor. Having to not have any intermediate or long term debt on your balance sheet makes you cash flow really well and as we moved forward and equipment needed to be updated then He would give me the old equipment as trade in and then I was solely responsible for paying for it and he got to use it for free. Been a good deal in my mind. He is 75 and still farming but I own 3/4th of the equipment now and hopefully can do this arrangement with the next generation that decides to make a living from dirt. The only other fair alternative and still have family peace (which is way more valuable than anything else) is to keep track of everything and pay Each other for every cost. No trading! Pay him for barn rent, pay him for labor, he pays every time that tractor puts on an hour, every acre covered, every gallon of fuel, etc. wish you success in your family business.