Fair rent agreement.

[Retired]

How do you come up with a fair crop share on hay land that needs to be worked down. A 3 yr lease 80 / 20 first yr then 75 / 25 ,then 2/3 1/3. Trying to be fair to both parties. Good to average land for our area ,some rolley ,and uneven . Trying to get out without selling out

[dfarms11]

How do you come up with a fair crop share on hay land that needs to be worked down. A 3 yr lease 80 / 20 first yr then 75 / 25 ,then 2/3 1/3. Trying to be fair to both parties. Good to average land for our area ,some rolley ,and uneven . Trying to get out without selling out

Sounds reasonable to me. If possible, I'd ask for a 5 year deal.

[bucket]

Not sure where you are at but haven't seen good results in the last three years of hay land being converted back to crop.

Level it, fertilize it and get someone to cut it.

If it doesn't rain, the crop won't produce either.

If the hayland isn't producing with its network of moisture grabbing roots, chances are it needs moisture and some fertilizer.

Just my 2 cents.

[bucket]

As an example a couple of BTOs around here.

One sprayed out hay, double pro-tilled it and seeded canola last year. Looked like summer fallow in September 2022. Seeded wheat 2023, might go 5.

Another well known one rolled in and sprayed out the hay, and direct seeded canola. He has already silaged the canola and the barley will have to be grazed because its too short to bother with. Good thing he is in the cattle business now.

[blackpowder]

I always seem to lose land I've cleaned up..... family takes it back, hmmm...
Perfect world, you pay retail for the work 'cause rent will be later. Better yet, custom farm it. It's deductible.
Crop share of any kind stinks but I assume you mean shares after same percentages of certain variable costs.
Crops on breaking need rain but honestly, it takes ten years to bring things up after it's been mined.

[jazz]

Is this rental agreement a handshake or on paper with lawyers and stuff.

This guy is taking a big risk trying to get land back in crop shape. Could walk if it goes badly. We get another yr like this one will take the starch out of the most gung ho guys.

Personally, I would find a middle of the road cash agreement and leave it there. Some people are negotiating full 3 yr payment up front.

When we remediated some hayland way back in the day, we put a fall rye crop into it to make sure we had something to harvest the first year.

[Guest]

Best thing to do is get someone to custom farm it for you , that way you assume the risk since you had the benefit of the hay land . Until the rains return , that land won’t grow anything . Just curious , on the share crop example you provided , how much of the inputs would you be paying your share for?

[blackpowder]

Wish I had a dollar for every time I've heard "fair".

[BreadWinner]

Year 1 farmer has all expense and no income
Year 2 farmer most likely looses money and breaks even at best
Year 3 farmer possibly makes close to a normal crop
I would say fair is first 3 years free then 80/20 after that.
If you don’t like it try it yourself and see how it works out.

[blackpowder]

Well sure, but here people will pay over 2% of the market value of the acre so..... What's fair?

BTW, operating interest soon to be 8.54%

[Retired]

In this case I would be the landlord. sale would be the only possible but I would honor the lease agreement .
We must be in a higher rainfall area as we generaly get 3 good crops after sod ,most of my land has been in grass for the last 50yr that I owned itand no fert.
Seen some direct seeding into sprayed out sod with very good yields ,one consederation is field size , some only 30 acre some 120 ,right now pasturing cows and haying but some realy isnt producing much hay so looking for something besides selling as now not ready for town life yet .But tired of fixing and long hrs so let someone else do it

[Retired]

Some how it canablized most of my post but the idea is still there.

[jamesb]

As renters we did something similar a few years ago. The quarter was what my father always called "go back". It had never been seeded down but eventually grasses came back and took over the weeds and guys started cutting hay on it. Its not real good land but its close to home. When it went out for tender, we bid less than half of local rent for 2 years and then moving up to the local norm as the land started producing normally. We have been happy with it and the owner as well. Thing is that its a heck of a lot more valuable now that it is producing normally. I'm old school and I like working it black to start with and zero till after. I have never been a fan of direct seeding into sod. There seems to be lots of badger holes and old ruts from wet years that need to be fixed.

[BreadWinner]

Been grass for 50 years, that would be interesting. Most pasture land around here that has been broken probably should of stayed in grass. Unless it was alfalfa it will need a ton of nitrogen to break down the sod.

[blackpowder]

And someday if lucky, we'll all get to wear the other shoe. I suspect some will sing a different tune. What kind of landlord will we be?