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dave85
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Discussion Starter #1
My company has some farm land in Iowa that we cash rent.
Just bought a farm that has been farmed on shares.
Anyone have any experience with this?
Corn and soybeans.

Who buys fertilizer?
Who gets farm subsidies?
1/2 and 1/2 or what %

Any info would help.

Thanks,
Dave
 

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In our area the crop shares are 2/3 to the farmer and 1/3 to the person owning the land. It wood maked the diference by what is grown in your area. The fertiliser and such will be worked out by the agreement. Some do it one way and others are the other. The farm supidustys are worked out like the other at the agreement.
 

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Around me, subsidies for the land go to the owner, crop subsidy to the farmer. Fertilizer seed split 50/50 and the 2/3 and 1/3 like above. It is usually a good deal for both parties here with beans, wheat or corn.
 

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Almost everyone has gone to cash rent around here. Keeps things simple, & all risk to the farmer....

Cash rents 'here' were 60/ 40, with 60% to the farmer, and typically all expenses to the farmer. Some did 50-50, with fert & herbicide & seed split 50-50 also.

I hear everything from 75-25 to 50-50 from different parts of the country, and all sorts of cost share on inputs. Kinda gotta make it up for the location you are at.

Govt payments: If you cash rent with no strings, all the govt money goes to the farmer.

If the landlord shares any of the risk or expense or management of the year's farming, FSA demands that the landlord also gets a proportional share of the govt checks. How it is split is up to you, but it must be split with a check to both parties. This makes share cropping much more paperwork these days.
 

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Hello, hello....is there anybody in there.....?
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I prefer to lease my land per acre. That way if the crop fails, I dont lose anything, and I dont have expenses. And the man I rent to keeps the ditchbanks mowed and trees cut back around the fields as part of the deal.
I dont get rich, but it pays the property taxes
 

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dave85
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Discussion Starter #7
I found a lot of info also on the Iowa State site.

I think we'll probably cash rent it like the others.
Dave
 

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When Grandpa was on the farm he took 1/3 the crop and often sold it different time- for better price- than his renters did (or they used it internally for their hogs etc). Now we get cash rent, and pretty low one too, now only one old Uncle is around to advise us on fair prices and he no longer farms. Raised rent once in past decade. About $3000 on 160 acres minus sizeable area of slough and old farmstead not tillable (and even harvesting hay from our old driveway might be hazardous to machinery).
 

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Here in southern MN good corn/bean ground goes for $120 - 160 an acre, and is going up an additional $5-50 an acre this year in light of the higher grain prices - which actually have dropped over a buck a bushel the past month. Add in the extra fuel, fert, & seed costs and I'm not sure any of it cash-flows any more.....

I suspect your Alabama land isn't quite as productive, at about $22 an acre. :)

--->Paul
 
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