# What is a fair crop share?



## kfarm_EC_IL (Aug 5, 2008)

What kind of crop share would you suggest.

We have several land lords that we row crop for that have ground that shouldn't be farmed but can raise a cover crop such as hay. These areas are little patches here and there. Couple of acres at the most. Waterways and field edges bordering woods.

What I have been doing is making sure when we are doing haying that the place is mowed up close and looks well. No rent as such paid. Take them (several different landlords) out to dinner, plow out the snow in winter.

We are starting to grow so we are having to discuss more and more types of rental agreements. So I concern is that if I start giving 1/3 2/3 on other hay ground like this I will then need to give it on the ground we are currently working. I think that is only fair. My problem is coming up with a fair share on marginal ground. None of it is flat and square.

What do you all suggest? Thanks for the insight!
Mark K


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## TBrown (Nov 27, 2008)

Mark,

For what it is worth, we are giving our landlords 1/3 on the marginal ground and grass, and 1/2 on the good alfalfa ground (15-20 acres+ that is relatively flat and easy going and has proper fertility). Make sure you know the fertility on the ground before entering into anything. We have even worked with guys with real low fertility on a 1/3 basis and helped get the fertility up then went to 50% once it started yeilding decent.


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## hayfarmer (Nov 9, 2008)

In Louisiana, hay fields are rented out the same as pasture. I think the average is $25-$40/a per year. We usually ask for at least a 10 year contract.

Row crows can go anywere from $75/a a year (even the fallow years) to 25%. In some cases the landowner also shares in some of the planting cost.
Our yeilds are not as high as in the Delta areas so income is less.

In some cases a cattle farmer will do hay on halves. The cattle farmer pays for the fertilizer and the other is responsible for the harvesting of all the hay. This is usually done when the hay is round baled. However most of the cattle farmers who do a field on halves usually doesn't put much fertilizer and very little if any weed control.

I pay a flat rate of $25/a a year. This is because it takes me two years to get a crop. The fields were previously used to grow rice so you have to take all the levees out and level the land (very expensive). I am blessed that I have a couple of landowners who let me use there land just for keeping it up. These are small fields (15-20 acres) that the big farmers don't want to use. The landowner get their land taken care of for free instead of paying someone to mow it several times a year. I always leave the land in better shape than when I first started using it. So far I have been able to used the land for at least 5-7 years.


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## kfarm_EC_IL (Aug 5, 2008)

Thanks for the Advice!
Mark


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## greengirl (Mar 24, 2009)

I found a great site that may be of use for your area. It has loads of info on the crop shares in Illinois. I hope you can make sense of it. Share rents in Illinois


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## prairie (Jun 20, 2008)

The following link pretty well describes how we handle our corn/soybean rotation (gyration?) crop share lease with our renter. Basically the landlord and renter agree to $ values on all inputs and the share % received by each is the same as the % of total input each contributes.

http://agecon.uwyo.edu/RiskMgt/legalrisk/CSorCSCASHRENTALArrangforFarmPDF.PDF

Example: I as the landlord provide the land, valued at an agreed upon cash rent value. My renter provides all other inputs (seed, tillage, fertilizer, harvesting, etc.), at agreed upon values. If the value of my contribution is 40% of the total input costs, I receive 40% of the output.

In my area, for a corn/soybean rotation, a equitable share split has been very close to the 60/40 with the landlord providing the land and renter all other inputs. 
This needs to be re-figured annually though to keep up with changing land rents and input costs.
Also you need to take into consideration any other factors that could possibly affect the share split. Are there long term considerations, such as fertilizer carryover, perennial crops, etc.? Would 160 acres that is square and gently rolling be more appealing to a renter than 160 acres that is steep and rugged and broke up into several odd shaped pieces?


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