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09/01/10, 04:32 PM
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Join Date: Feb 2010
Location: NW MO
Posts: 684
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Share cropping ?
Info and help needed. We have been advised that we should ask someone to plant /farm our land, maybe 8 acres. The common crops here are, corn, soybeans, wheat, at least that i'm aware of.
What I need to know is the basic reasonable rules for this. Expenses going in, to the owner. Fertilizer, seed. Who determines whether to plow or disc ?
We would prefer crop - wheat - instead of cash, but how is that generally split ? 1/2 to land owner or less ? Is it reasonable to expect an accounting from the farmer regarding expenditures and product yield and price per bushel received ? ONLY in regard to our crop/portion. I know of someone who lost a 40 acre crop income, due to NOT asking questions or having a detailed agreement.
OTOH, as far as product is concerned, as far as i know, most people around here are Roundup Ready fans, personally I don't want to eat that product. So it almost feels like a catch 22 situation.
One drawback for the would-be farmer is that the 8 acres is not one continuous field, and yes I realize that with todays equipment 8 acres is tiny and perhaps aggravating. TIA Are there things I've missed and should be concerned about.
Last edited by katy; 09/01/10 at 04:33 PM.
Reason: clarity
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09/01/10, 05:12 PM
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Banned
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Join Date: Sep 2009
Location: Illinois
Posts: 431
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Why don't you hay the 8 acres yourself, two crops a year, maybe you could do better in the long run.
My BF has 10 acres, straight continuous field that is farmed for him by a step-cousin of his along with 140 acres the rest of the BF's family owns. No money outlay at ALL on the BF's part and in a good year he gets about $1800 for the corn or soy beans (roundup ready of course) that are planted and harvested there.
Emmy
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09/01/10, 05:50 PM
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Born in the wrong Century
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Join Date: Jan 2009
Location: Michigan
Posts: 5,067
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If you had enough people willing a coop garden may be a better venture?
I dont see some one willing to split a harvest 50/50, they assume all the cost-equipment,seed,time.
if something happens they are the ones out, your land will still be there sure you might not get what you expected but your really not out anything.
I would say on a up front basis you could ask for a little more then a lease will bring under normal terms and I'm sure you could ask for it in the form of the crop based on the selling price at time of harvest.
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09/01/10, 09:37 PM
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In Remembrance
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Join Date: Jun 2002
Location: South Central Kansas
Posts: 11,076
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__________________
My family---bEI
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09/01/10, 11:30 PM
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Join Date: Jan 2004
Location: MN
Posts: 7,609
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Anything you work out will be fine. Sometimes you get to share some of the expenses, sometimes many of the expenses, sometimes few or none. Depends on local custom.
This will also determine the crop share - anything from 50-50 to 33(to the land owner) - 66 (to the farmer) can be sommon. If you want 50% as the land owner, you will assume more of the expenses. Some things like lime, if you need it, is a 5-10 year investment, so either you pay for it, or offer a 5-10 year lease, or you need to buy back the extra lime if you kick the farmer off early. That sort of thing.
At this time wheat is not GMO. Most corn & soybeans are.
8 acres would be an ok field for someone within 2-3 miles of you; but cut up, perhaps irregular sizes, ya that becomes a pain. Would make your land less desirable, you would get a smaller %.
Cash rent is popular around here, it doesn't affect social security so much.
If you crop share, you are considered 'farming' and get a different set of income tax rules - allows you to deduct farm things like a tractor if you buy one, but exposes you to more social security taxes. Can be good, can be bad, depends on where you are at. It's a whole new game figuring out which way to go, cash rent or crop share.
You should get your portion of wheat, you might need to pay for it to be hauled to the nearest elevator but often not. From there it is yoursto sell as you want. Of course he can deliver it to your bin at your place instead. But all of this can be worked out different ways, just depends on what is common in your area - it's done differently in different places.
Are you in a 30 bu an acre area, or a 60 bu an acre area? If you get 40% and wish to keep it, need to know how much room you need....
--->Paul
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09/02/10, 10:28 AM
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Join Date: Jun 2002
Posts: 5,240
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It also depends on if you can find a farmer who is looking for more land to plant on. If there is plenty of land not being used that he can farm for free (or nearly so), why would he want to mess with your few acres and pay out a percentage of the crop?
Here in PA, I "rent" our field to a local farmer. It's usually either planted in field corn or soybeans. There is probably about 50 acres and he pays $275.00 / year. Plus I get whatever amount of free hay I want.
This helps to pay the taxes and keeps the land from growing up. What areas he doesn't farm, he brush hogs once a year.
If he didn't farm it, I would have to brush hog the whole area to keep it from growing up.
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Michael W. Smith in North-West Pennsylvania
"Everything happens for a reason."
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09/02/10, 03:15 PM
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Join Date: May 2002
Posts: 7,154
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You are pretty well stuck with whatever the farmers near you are willing to do. Drop in on some of them and see what they say. Some won't want to farm it due to size and shape. A field that isn't square or a rectangle is a pain with large equipment. Let them make an offer if they want and go from there.
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09/02/10, 05:08 PM
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Join Date: May 2004
Posts: 1,623
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It must be heck, living somewhere that doesn't have extension agents you can ask to advise you. Of course, no-one with half a brain would ignore that source of local knowledge and advice when it's obviously available.
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09/02/10, 05:21 PM
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Family Jersey Dairy
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Join Date: Jun 2009
Location: Illinois
Posts: 4,773
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Around here the big farmers won`t mess with 8 acres, then it is left to the hobby guys running it. And they all have full time jobs so getting it done is at best hap hazard. Farms here rent for alot of money, and cash is the main thing here. Very few farms rented on shares here, but there are some, mostly livestock. Think if it was me, buy some hay equipment, and sell hay. >Thanks Marc
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09/02/10, 05:51 PM
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Join Date: Jan 2004
Location: MN
Posts: 7,609
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Quote:
Originally Posted by Michael W. Smith
Here in PA, I "rent" our field to a local farmer. It's usually either planted in field corn or soybeans. There is probably about 50 acres and he pays $275.00 / year. Plus I get whatever amount of free hay I want.
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Do you mean per acre, or total for the 50 acres???
'Here' it would be close to the $275 per acre on the better ground, 50 acres is a nice big plot.
The 8 acres, and cut up into bits, will be more difficult. Be lucky to get $50 an acre for that, even 'here'.
The whole share crop thing has died around here as I mentioned before, with social security tax issues it's all gone to cash rent.
--->Paul
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