Business
I took over a portion of the land my dad rented a couple years ago and a share of the equipment. Dad is 480ac and I'm 530ac. I have bought more equipment since then to upgrade older equipment of his and just add to the farm. I have 2 tractors and he has combine and a tractor. Currently we split fuel 50/50 and shop and grain bin site. Now he wants to split the equipment maintenance 50/50 as well instead of he pays for his and I pay for mine. He's had financial issues over the past couple years which is why I've taken over more and more. The problem I have is basically every time he comes up short on money I get a call asking for me to take on more. I'm just trying to figure out what is fair and best ways to go forward with him want to transition to me having more ownership. Btw it's 2 separate operations farming together.
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The answer is there is really no right answer to how expenses should be split.
I started farming in HS, and have had a completely "separate" operation from my dad ever since. I started out with no equipment and he let me use his equipment for free for a few years. After that, I was able to pay him 1/2 custom rates, then full custom rates. I've been replacing any outdated equipment, so now I can ...
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Second thought I would combine the farm only keeping the operator of the parcels separate at the FSA so you can qualify for more programs. Then disburse any profits from the farm by the percentage of the acres. We tried doing the keep everything separate thing and it just lead to more problems. a lot of double buying of things. Set it up right though with llc and let's otherwise you have a lot o...
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I would split it by the percentage of land. Some pieces of equipment (Combine) are more expensive to maintain then others.
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