# Hay shares on 100 acres



## rrch129 (Oct 5, 2009)

Well it looks like I may have picked up more hay ground. The lady wants to do a 50/50 split but not pay any fuel or twine or upkeep on equipment. What is a way of talking her down to a 60/40 or 70/30 split? On top of no pay for fuel, twine, or equipment costs I cant store the rolls there I have to haul them away to the buyer which is about 5 miles down the road. It is an incurred cost either way just wondering how I could work her down or explain to her all those costs add up. Thanks the guys!


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## LaneFarms (Apr 10, 2010)

sounds like a pretty fair deal to me. Around here we do everything on 50/50 with the landowner providing the land and fertiizer and we cut and bale and remove our half as soon as we can.


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## vhaby (Dec 30, 2009)

The first hay season after we bought our place, a hay man proposed a 50/50 split if we fertilized the grass. Since we didn't fertilize, he proposed a 60/40 with him getting the 60% of the hay. We had no equipment for handling round bales so we proposed to do the 60/40 if he stacked our part of the hay in the hay yard. He agreed. Normally, a 50/50 split is used here with a haying company doing the cutting, raking, and baling and the land owner fertilizing and growing the grass. Since we hate the thought of losing nutrients from our place, we now pay the haying company to do the haying and we keep all the hay and feed it to our cattle to redeposit the nutrients on the soil. By doing it this way, we end up having about $60 in each large round bale. Most cattle producing hay buyers are reluctant to pay this price much less a bit more for our management, time, and hay handling unless they are in a bind induced by a severe hay shortage because of a drought.

If you want to up the percentage of hay that you get in the deal, you might propose to pay part of the fertilizer bill. The fertilizer that I put on my grass for hay costs more than the $25 per bale that the haying company charges and that leaves me allowing nothing for paying for the land that the grass is grown on. IMO, with having to buy the fertilizer at today's prices and pay for the land, a haying company should feel fortunate to get 50% of the hay.


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## Customfarming (Oct 8, 2009)

We do not do anything 50/50 cant afford too. If its fertilized we will do it for 3:1 or if not at least 5:1. Price of fuel, equipment and other expenses are the reasoning. If we have to fertilize a field we take it all. Now telling the land owner that will be difficult and probably wont be easy but no need to lose money on something. I would just arrange a meeting with her and sit down discuss the costs and how you cannot afford to do for 50/50. Do not get mad and if she does not see it the same way then it was not meant to be.


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## rjmoses (Apr 4, 2010)

When negotiating any deal, do your homework first: Find out as much info as you can about what other similar deals are in your area. Know what is a fair deal for you (Rule of thumb: A fair deal is usually neither party gets everything they want, but both are satisfied.)

Like Customfarming said: don't get mad. Say everything with a smile and appreciation, even if you say "No".

And remember that what is a fair deal for you may not be a fair deal for anybody else because of your circumstances.

Ralph


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## swmnhay (Jun 13, 2008)

Alot of variables.

What kind of hay and what is it worth.

Figure all your costs at custom rates.

Compare the two.

You have the weather risk so need to factor some of that in.

Fertilizer should be split the same as the hay split as both will be benifiting from it in higher yield.

HERE.For alfalfa 50-50 and split fertilizer bill.And I will pay all seed costs with a long term contract.


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## mulberrygrovefamilyfarm (Feb 11, 2009)

Not sure where you are but 50/50 around here for hay right now would be a tough sell. With corn/bean prices what they are, the land owner is much better off paying for someone to take out the hay and do custom corn/bean on 100ac for her and she would come out WAY ahead unless the ground wont grow corn or beans for some reason. Around here that's what's in the landowners head and it's tough to get them to understand the cost pressures associated with hay when they can lock into another crop that is bringing high $$ with insurance to boot.


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## rrch129 (Oct 5, 2009)

All very good advice guys. I am in Kentucky. The lasy has about 150 acres that is currently in crops and this 100 acres for hay. I have picked up the hay just need to see if she'll do 2/3 1/3 and I am going to try to pick up the crop ground which she currently goes 50/50 on. Not sure why this hay ground isnt in crops but not my land.


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## mlappin (Jun 25, 2009)

These days I only have one person I'll do shares with on hay and it's 2/3's-1/3. I do some custom work as well, I might have to raise prices on that as I still turn some down.

Won't do 50/50 on hay or row crops. Just not worth the hassle.


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## mulberrygrovefamilyfarm (Feb 11, 2009)

rrch129 said:


> I am going to try to pick up the crop ground which she currently goes 50/50 on.


Quick, check to see if there's a line of pickups lined up in her lane. If word got out here there'd be a line of farmers waiting to have coffee and "visit";>


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## blueriver (Oct 19, 2009)

I am in SE Oklahoma, any ground is hard to find ... my theroy is if its close and I can work it out I WANT IT !! I have 100 acres on 50/50 the land owner does the lime, fertilize and uses his tractor to stack his share and load mine on my trailer... if I need an extra tractor his is available. I have another 40 on 50/50 this owner also does the lime, fertilize uses my cutter on his tractor then we rake and bale, he also stacks his and lines mine up for me. Another 20 acres right across the road this owner we do 60/40 he pays 40% of the lime/fertilize ... I handle the rest, he needs no hay so I buy his 40% from him. Also hay 35 acres 100% mine the land owner states "do anything you want" ... Finally I have 30 acres just picked up last fall, same thing 100% do as I see fit.


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## haystax (Jul 24, 2010)

Why don't you go base the split on the current market prices for rent, custom haying, and hay prices? You need to do your homework on these variables anyway - show the figures to the landowner to justify your position. You both need to be educated in economics of the transaction.


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## baddog201 (Sep 18, 2010)

I make alot of hay on shares 50/50 the owner pays everything as far a fertilizer and anything else. If they want me to do the fertilizer and everything then i take 75/25 and they are responsible for picking their share up i do not touch their share. I dont make much on shares but it is nice because you dont need to worry about anythign if they run there dirt down their fault not mine.


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