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Crop Share arrangement

N

Nathan (SD)

Member
I am going to provide the land and all the crop inputs. Other guy provides his machinery and his butt in the seats and his fuel. Tillage ,planting ,spraying ,harvesting.
What would be a fair split?
 
I would expect somewhere between 2/3 and 3/4 of the crop. Usually 50/50 if splitting the expenses and between 1/4 and 1/3 if the landowner pays nothing.
 
County FSA should have a list of custom rates, since you are paying inputs you are basically hiring someone to do the work and all income should be yours.
 
I want to farm with them. Someone supplies $300/seed and
other inputs and i supply equipment and fuel and time for 1/2
the crop. Heck yes i'd do that everyday.
 
Your asking for trouble,sooner or later someone gets greedy or doesn't do what he's supposed to and you've got trouble.Been there done that.
 
I agree with gtski, You are basically taking all the risk and just hiring cutom labor/equipment. You should pay custom rates for your area for tillage, combining, planting, etc. and takk all of the crop.
 
What is the reason you don't go straight cash rent? Guaranteee 4 years minimum. Quarterly payments.
If you do go the way you said you should get About 75% of the crop. But who buys ins? Who gets the payments. WHo takes it in the shorts if he doesn't get the crop in befroe snow? How many other acres does he farm? Will yours be LAST on his schedule?
Just rent it and forget it.
 
One place its 50/50 on input expenses and he does the combineing and trucking. Another I rent it 75/25 and cost me nothing.
 

If you are providing all the crop inputs then he doesn't get much in my opinion. My neighbor pays $85/acre for custom farming and he gets all the crop at the end.

I have several 50/50 crop shares. The landlord provides the land and pays for half of the inputs (seed, fertilizer, pesticide, herbicide). I provide the equipment, labor, and the other half of the inputs.

Jim
 
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