Share crop vs cash rent
Was wondering if anybody does any share cropping instead of cash rent. If so are you doing 50/50, 75/25, or 33/66. Long and the short of it is got a neighbor farmer that only wants to tend cash crop (tobacco and sweet potatoes) and wants me to tend his grain for rotation. He is going to continue to rent land, fertilizer, lime, and he has buns and a dryer. Any insight what would be fair.
We have mostly share rent on our farm, some cash rent. Our shares are on 1/3 LL, 2/3 tenant. Most are split on fertilizer, chemical, & grain. Some will pay 100% of bindweed (our most troublesome weed) specific chemical in addition to their splits. Crop insurance for LL is all on them if they take it or not, same with FSA programs. If they want to give us a POA we will fill their paperwork out since it's not that hard.
50/50 on chem & application/fert & application/seed/drying/trucking
The landowner provides land, I provide planting, harvesting & labor.
30/70 with renter under share crop. I receive 30% plus provide supplemental fertlizer. I use Agzyme fertilizer called Pervade and Enhance that significantly boosts yields on both soybeans and corn. This arrangement works well for both the landowner and the renter.
Where do you get this Fert? I've not heard of it here in NE. Would like to investigate/use it on my land.
Chuck give me a call I am a dealer in SD. 605.460.0355
I have done both. In our lower yield fallow ground environment I prefer cash. Fallow gets so expensive per cropped acre I have had the insurance and gov payments get me through to many years in the past 5 years. Give up a share of those payments and it hurt. Not a proud thing but it has been true. I find share harder to get ahead when we do have a good year. I also had plenty of land lords. I have had a farmer take my highest protein wheat as his share with out talking to me about it. Had a share crop land lord certain I was charging stuff to her and using it on other land. Share just gets more confusing also. Cash is simple. Every situation is a bit different.
Very true Lance. For me I prefer cash over share even though it makes fallow wheat tougher with the doubled up cash rent. Cash rent is a big reason I’ve got reduced wheat acres since I started taking over leases from my dad. Like you said, find out what works for both parties and roll.
We try to give our landlords an estimate of expenses that we are looking at for that year. We then send an itemized bill to our landlords for their share. Until we get reimbursed, their share of the crop doesn’t get delivered in their name, just sits in the bin. We had one landlord we sat on their wheat for 18mo. That was the first lease we converted to cash rent.
72/28 we pay for everything but property tax
We share crop all the time in west Nebraska
Corn and small grains iare 2/3 1/3 land owner pays their share of fertilizer, insecticide water and property tax. Farmer pays 100% of every thing else.
Higher value more labor intensive crops such as sugar beets is 75/25
78 farmer 22 LL
Farmer provides all inputs
LL does crop insurance but we have never had a claim on that farm. LL Pays land taxes.
Nearly all of ours are crop share, especially irrigated ground. 75/25. Landlord pays their share of fertilizer, herbicide, insecticide, harvest. Landlord is responsible for all land taxes, any underground irrigation repair (pump, water line, etc). Most dryland acres are shifting to cash lease because it is easier.
We run a 50/50 with all of our crop share landlords. Split all inputs except ag lime and conservation work, but including planting and harvesting costs. If we are in a long term relationship, we’ll split lime and conservation too.
Wow. You guys on those big shares are paying some heavy rent. I always tell landowners that have share arrangements it's a partnership and somebody always gets fcked in a partnership. Then years later when they have their guy back out because it dosent work, I get to say I told you so. Seen it 3 times here. It's a terrible arrangement. It breeds distrust. Just pay the man $60 bucks or whatever. It's NC no reason to lick boots for sorry ass tobacco and potato land. You just farming grain, to help him out. What you gonna make 40 beans and 100 corn, if we don't drought, flood, hurricane, may 9 frost? Damn the dryer haul it to murphy brown/south east/mountaire, dump it be done with it. Handle twice for a few dollars, so you owe the man a share. Seriously. My cousin done peanuts and tobacco in allotment times, along everywhere from wilson to pembroke and every man he ever had take the grain side went bankrupt. It's a trap. Just leave it alone. These boys out west got double our yields, you listen to em you gonna be down there at FSA trying to keep the pickup and the house. What do I know. I spent 600 this year and I may get 200 back. Salty
$60 dollar cash rent.....man
Totally agree on shares. It sucks keeping track of EVERYTHING.
WE'VE done flex rent. Base rent 20% lower than most frequent Rent or 20% of the gross revenue from crop, gov't payments, hail /cropinsurance. Higher of the two. Big years landlord can brag on big rent, average/poor years he/she knows you'll stay in business.
70/30 split for my renter. I assist the renter by paying for liquid fertilizer. THat works well as our yields have increased 20% with Agzyme.
We use Agxyme too and have the same results
I do share cropping with my rented ground instead of cash rent, we do1/3 for him 2/3 for me on wheat and 1/4 for him and 3/4 on spring crops like millet and corn
Much easier handing over cash than trying to keep track of everything for share cropping. That can get hectic very quickly. At least that’s been my experience with it. We had just a bit a few years back but steered everything away from that. Lot less hectic to set a price per acre and pay the cash.
It certainly can be a pain to track, but once you get it all organized, it’s maybe a couple days of work a year. I really think it’s worth it to be able to share risk with landowner and align priorities (fertility and conservation conversations are much easier when they see the upside in their return).
As a grower I prefer either cash rent or a smaller % .
2/3-1/3 has the grower and land owner splitting costs on fertilizer and chemical this can get tedious and opens up an opportunity for errors.
Cash rent has the grower controlling all fees , as does a 80/20 or adjusted like 84/16 depending on the quality of the ground. The land owner not responsible for inputs .
Landowners are still required to cover their own crop insurance . Also can add in they land owners do pay part of it all of noxious weed controls