Crop Share vs Cash Rent

[ajl]

My landlords, who rent their land to an STO, receive rent in advance of the season. My advice to the OP would be to do something similar as in find a smaller op that can accommodate your needs. The BTO has stated that your land is not that important to them so they can be spared the hassle. I will grant that watching X9's harvest your crop is much cooler than the older machine that I use. Got some good crop this year so planning an upgrade but will not be to an X9. To the 80 year old that did not get rent for a few years, maybe it is time to sell? 5% on a GIC beats that.

[furrowtickler]

The best crop share / cash rent deal we did was fair for both . 1/2 the going cash rent on similar land and 10% crop share.
They get a guaranteed amount to cover tax’s and more, while we did not give up way to much in excessive crop share so we could still cover expenses on our side with less risk
But very few want to be bothered with thinking differently

[blackpowder]

furrow.
And after several years, how did it compare to cash??
Fair to both usually means close to going rate cash.
U have a rare landowner.
That arrangement here, would be $160 + . Again right on top cash.
Long term deals redone every so often are at max $110.
You're going to need that $50

[furrowtickler]

furrow.
And after several years, how did it compare to cash??
Fair to both usually means close to going rate cash.
U have a rare landowner.
That arrangement here, would be $160 + . Again right on top cash.
Long term deals redone every so often are at max $110.
You're going to need that $50

Had a rare landowner, they have since passed
Now it mostly cash , some crop share left .
Yup on good years close to cash , but risk is less
We have not had many good years heat lately
This year decent yes .

[blackpowder]

Haven't seen thirds here since eighties. Quarter too much of gross.
Fifth closer to cash here.

[Guest]

50 x 18 = 900 an acre x 1/3 share = $ 297 an acre !

change from cash rent to share rent !

give yer*** head a shake
canola inputs are close to $500, machinery costs and parts through the roof, plus $297 1/3 share
nothing for the guy doing all the work and taking all the risk ??????????????????
are you high? or just being sarcastic?
if you're serious , good luck finding anyone simple enough to agree to it!

[TOM4CWB]

Haven't seen thirds here since eighties. Quarter too much of gross.
Fifth closer to cash here.

Third crop share normally included 1/3 of cash expenses off 1/3 gross landowner's income...or;

1/4 share of gross with no cash expenses ... has been the norm for many...or;

or 1/3 gross income to farming partner... with all cash expenses paid by landowner to assure farming status with CRA... the farming partner pays the expenses and then farmer subtracts them from the 2/3rds gross, then paying the remainder to landowner.... after all farming cash expenses and grain sales complete for that crop year. Trust is required for these arrangements to work...by landowner of farmer especially...

Cheers

[blackpowder]

Agree Tom but glad to see those days behind me.

[furrowtickler]

Problem nowadays Tom is that some older landlords can’t comprehend the massive increase in inputs and that can be an issue and a headache not worthwhile for the renter to explain when costs used to be $100 / ac that are now over triple even on modest farms .

[shtferbrains]

Crop share was common when CWB quota and summerfallow were the norm.
If you were on 1/2 SF or even 1/3 SF with very little cash inputs the appeal of not paying the landlord 1/2 or 1/3 of the time but having the additional quota made it the most popular.

I'm surprised when I hear it mentioned today.
Can't see any appeal for the tenant.

[furrowtickler]

Increase of inputs ain't the landlord's problem !

I feel it's better to get a better deal on canola seed and fertilizer than Jew on the rent !

I dont pre buy fertilizer before the rents paid !

It sure is heck is when they are paying a share of expenses if you are in that type of arrangement .
But that’s for those to worry about .

[furrowtickler]

Saw a guy out here ruin his whole farm by chiseling on the rent when he was to stupid to realize he was getting every break under the sun !

Probably would of inherited the land some day !

Strange things happen when it comes to land !

Good thing is here no one even mentioned chiseling rent on this thread

[Guest]

saw lotsa old pricks here take advantage of their renter
like making then combine , haul, dry their last crops, dig ditches they never could , clean up piles , bush , etc
or do work for them for SFA, then forget who renter was when it came time to sell
don't even go there FFS

[Guest]

we rent from some very, very good fair people who understand what we are doing ,we pay them in FEB. , treat their land like our own, its a good business arrangement . they can't believe the money we are spending
lucky its not some of the ones that became unhinged from reality

[Partners]

1 cash rent..owner tells us to pay him what we think is fair..
$100 per acre the last 2 yrs..
1 crop share.
Owner gets their % and able to sell when ever they want.
Both work great..