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Percentage with young renter ...
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Posted 4/30/2021 21:39 (#8981024 - in reply to #8980973)
Subject: RE: Percentage with young renter ...

Kettle Moraine, WI
How you speak of his equipment makes me assume you have better equipment. So I conclude him farming your ground in some fashion, yields will decline lowering the total pot of money to split.

Ambition is important, it declines with age. Can his ambition be put forward in a crop share situation to get crop in ground better, quicker, and with closer watch to add yield to increase the pot of money.

Sounds like he may be good candidate for fsa micro loan if it is only 50 acres. Quick, less complicated source of capital.

If he has ambition, is he making $20 an hour at a full time job? Lots of jobs from driving to factory work that could get him some 50k+ with overtime with zero investment.

I ask this rhetorically, "can you handle less than ideal crop if the other person makes a wrong decision?". Nothing will make an ambitious kid give up quicker than someone micromanaging every move and decision. Equally so, is he just replacement labor or replacement management?

Cash rent it is my opinion. Jump in head first for him. If he can't get a loan for the inputs at these prices, that's a deeper issue. If you want to co-manage a share, those arrangements are always 110% to 110% that they're right.

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