Machinery
My dad and i share crop and we are adding an irrigation pivot, currently we 50/50 on the crop share we are trying to figure out the best ratio to change our contract to be right for the investment, to be clear My dad is making the investment and is carrying the cost of the investement, some websites say 60/40 some say 65/35 some say just acre rent, would like some input on this so we can write a new contract with the right ratios and i can submit my USDA application for my operation funding this year.
Thank you in advance.
1
We have several like this. But our percentages are 75/25 and 66.66/33.33. But rule of thumb is land owner puts well, pump and electric service in if it’s an electric machine. And farmer puts up the pivot and power unit if it’s not a electric machine. Then if lease expires and lose ground farmer takes what is moveable with him and land owner keeps well since it can’t be moved. This make sense. Farmer then is responsible for the electric or diesel bill, mainentence of machine, insurance of the machine. Landowner responsible for insurance of the well and pump.
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