Farm Lease

Message Topic Search Topic Options Post Reply Create New Topic Printable Version Translate Topic

   My neighbor is wanting me to tend his farm after seeing the changes I have done at mine. The question or questions are what is acceptable as far as labor or compensation? He currently has a guy that has 8 cows on the farm but he is paying another neighbor to bush hog the pastures and trim trees,etc. I personally think the cow guy is taking advantage of him. The pastures all need work and the hay field needs trees removed and seeding and lime. He has offered to pay for half the seed, fertilizer and lime but wants a cut on the hay I will bale and sell. Most farmland around here leases a year at a time. I can't put money into hay fields and pastures that I will run a risk of losing after a year, not that I think that would happen but how do I protect myself and my investment? He wanted to lose the cows and have me bale all the land but after thinking about it I think I want some of my own cows there. What or how have y'all seen done around the country? I talked to one of my customers who is a full time farmer and he advised me that around here tending to a farm is the payment that there's not enough money in crops hay or cows to offer financial compensation for the lease. 
How should I go about this?

	This site is not affiliated with AGCO Inc., Duluth GA., Allis-Chalmers Co., Milwaukee, WI., or any surviving or related corporate entity. All trademarks remain the property of their respective owners. All information presented herein should be considered the result of an un-moderated public forum with no responsibility for its accuracy or usability assumed by the users and sponsors of this site or any corporate entity.
	The Forum	Parts and Services	Unofficial Allis Store	Tractor Shows	Serial Numbers	History

Author	Message Topic Search Topic Options Post Reply Create New Topic Printable Version Translate Topic
Red Bank Members Profile Send Private Message Find Members Posts Add to Buddy List Orange Level Access Joined: 18 Apr 2018 Location: Germanton NC Points: 1051	Post Options Post Reply Quote Red Bank Report Post Thanks(0) Quote Reply Topic: Farm Lease Posted: 25 Nov 2018 at 4:39pm
	My neighbor is wanting me to tend his farm after seeing the changes I have done at mine. The question or questions are what is acceptable as far as labor or compensation? He currently has a guy that has 8 cows on the farm but he is paying another neighbor to bush hog the pastures and trim trees,etc. I personally think the cow guy is taking advantage of him. The pastures all need work and the hay field needs trees removed and seeding and lime. He has offered to pay for half the seed, fertilizer and lime but wants a cut on the hay I will bale and sell. Most farmland around here leases a year at a time. I can't put money into hay fields and pastures that I will run a risk of losing after a year, not that I think that would happen but how do I protect myself and my investment? He wanted to lose the cows and have me bale all the land but after thinking about it I think I want some of my own cows there. What or how have y'all seen done around the country? I talked to one of my customers who is a full time farmer and he advised me that around here tending to a farm is the payment that there's not enough money in crops hay or cows to offer financial compensation for the lease. How should I go about this?

Sponsored Links

TDF Members Profile Send Private Message Find Members Posts Add to Buddy List Bronze Level Joined: 22 Oct 2015 Location: Seward, NE Points: 63	Post Options Post Reply Quote TDF Report Post Thanks(0) Quote Reply Posted: 25 Nov 2018 at 4:58pm
	The dairy farm down the road contacted me when the farmer who was farming my land on shares, year to year, retired. It's a small piece only 15 acres but he wanted to put alfalfa on it which suited me fine. We came to an agreement on a cash rent price and because he was going to do the work of seeding it and wanted to protect that investment we agreed to a 5 year contract which seemed a quite reasonable to me. Explain your case to the man that you want to protect that investment into the land and be reasonable about how long that protection would need to be and work up a contract. TDF

SteveM C/IL Members Profile Send Private Message Find Members Posts Add to Buddy List Orange Level Access Joined: 12 Sep 2009 Location: Shelbyville IL Points: 8615	Post Options Post Reply Quote SteveM C/IL Report Post Thanks(0) Quote Reply Posted: 25 Nov 2018 at 8:52pm
	Not my expertise but I've heard others talk about 5 yr lease which only makes sense to me. Otherwise the crappy cash rent but it would have to be cheap and he likely wouldn't go for it. Be ready to walk...you don't need the experience. Since he's the one asking you,you may be able to work it out .Explain your side of the economics and see what he says.You are kinda in the drivers seat. Edited by SteveM C/IL - 25 Nov 2018 at 8:56pm

jaybmiller Members Profile Send Private Message Find Members Posts Add to Buddy List Orange Level Access Joined: 12 Sep 2009 Location: Greensville,Ont Points: 24662	Post Options Post Reply Quote jaybmiller Report Post Thanks(0) Quote Reply Posted: 25 Nov 2018 at 9:27pm
	My gut's telling me the same, get a 5 year contract. You need 'stability'..yeesh, say you invest $2000 in seed, $3000 in fuel and time and it either doesn't rain or pours..so NO crop = no return... One thing we don't know is size. I'm thinking 5 small 'pastures' are harder to deal with than say 40 acre big 'field'. If really next door , travel time is nothing BUT access like small gates might be a problem. Gotta think 'business man' NOT 'help a neighbour' and use pencil/paper. All too often the heart gets in the way of walking away from a bad business decision. Do you have the TIME to take on the extra work?? and DOUBLE what you 'think' it'll take. I'll play 'devil's advocate' all day if I can help you decide! Course I only have 1 acre here.... Jay
	3 D-14s,A-C forklift, B-112 Kubota BX23S lil' TOOT( The Other Orange Tractor) Never burn your bridges, unless you can walk on water

Darrell G (MN) Members Profile Send Private Message Find Members Posts Add to Buddy List Orange Level Joined: 11 Sep 2009 Location: Green Isle MN Points: 1496	Post Options Post Reply Quote Darrell G (MN) Report Post Thanks(0) Quote Reply Posted: 25 Nov 2018 at 9:34pm
	I rent a small farm in north central MN and when my renter seeds alfalfa he expects three years on that acreage. I have had the same renter for over 20 years and like the fact that he rotates crops from time to time. A good renter is still hard to find and I want to cooperate all I can. With the price of alfalfa today I don't think it's unreasonable to expect three years of harvest from it.

DMiller Members Profile Send Private Message Find Members Posts Add to Buddy List Orange Level Access Joined: 14 Sep 2009 Location: Hermann, Mo Points: 33898	Post Options Post Reply Quote DMiller Report Post Thanks(0) Quote Reply Posted: 26 Nov 2018 at 9:31am
	We lease our place to a cattle grower. It is THEIR responsibility to keep pasture and standing fence maintained, that is a standard here. They fertilize, they mow and seed all I am required to do is any lime applications and supply materials. They may hay the entire place or section it for pasture or bale as see fit, is theirs to use under the lease. HOWEVER, should they fail to attend the lease dissolves and they are removed from that activity. I can cut my own wood, trim trees, set new fence or gates but not their responsibility to do any new items or even remove dead fallen wood, just maintain existing. They are responsible if place too many animals and over graze where the grass begins to fail. We get $35/acre for that, no extra for hay or livestock sales just a open lease.

DougG Members Profile Send Private Message Find Members Posts Add to Buddy List Orange Level Joined: 20 Sep 2009 Location: Mo Points: 8342	Post Options Post Reply Quote DougG Report Post Thanks(0) Quote Reply Posted: 26 Nov 2018 at 11:25am
	Yeah the open lease is a bad deal in my opinion, gotta have a contract, some guys pull the lease just because someone else offered more money , seen it a few times

ac fleet Members Profile Send Private Message Find Members Posts Add to Buddy List Orange Level Joined: 12 Jan 2014 Location: Arrowsmith, ILL Points: 2335	Post Options Post Reply Quote ac fleet Report Post Thanks(0) Quote Reply Posted: 26 Nov 2018 at 12:10pm
	Go for a 3 or 5 year WRITTEN lease, spell out ALL expectations of both partys! Get's deep, BUT the only to protect your investment. You will probably find that you will spend way too much time cleaning up his mess to make it practical ! I would have him pay me to clean it up and then let him go his own way with it. Seen too many deals like this go south!!! thanks; ac fleet

Red Bank Members Profile Send Private Message Find Members Posts Add to Buddy List Orange Level Access Joined: 18 Apr 2018 Location: Germanton NC Points: 1051	Post Options Post Reply Quote Red Bank Report Post Thanks(0) Quote Reply Posted: 26 Nov 2018 at 3:03pm
	Thanks for all the replies. I have read all of them and it is helping me get things right in my head. Another question do I need to get a lawyer to draw up a contract or just print one from the net and make the changes I need?

farmboy520 Members Profile Send Private Message Find Members Posts Add to Buddy List Orange Level Access Joined: 22 Jun 2016 Location: Beason, IL Points: 553	Post Options Post Reply Quote farmboy520 Report Post Thanks(0) Quote Reply Posted: 26 Nov 2018 at 3:09pm
	You could print one from the net and make changes. This is if everything is agreed upon by both parties.

DMiller Members Profile Send Private Message Find Members Posts Add to Buddy List Orange Level Access Joined: 14 Sep 2009 Location: Hermann, Mo Points: 33898	Post Options Post Reply Quote DMiller Report Post Thanks(0) Quote Reply Posted: 26 Nov 2018 at 5:13pm
	So long as signed and witnessed by a third disinterested(neighbor to either, bank associate, anyone disconnected) party, does not need a notary just dated and copies to all concerned then is legal and binding. Hand shake contracts I am very limited on giving unless I have known that person and the way they do business a LONG time. Our lease is a three year, the previous renter did set brome in a field of ours then agreed to a one year half share with the new renters which BTW HE had decided to scale back not I pushing him out, that got lost in a handshake deal and he ended up cutting half three times. He has been told twice there is to be no more split. He wants to argue but refuses to fertilize his half, was angry that his half was not as productive as the other, felt was his right to harvest as many times he felt proper. I was a witness to the handshake, told him the second year he agreed to ONLY one, and then he quibbled into the third, I told him do NOT try again. Edited by DMiller - 26 Nov 2018 at 5:14pm

Red Bank Members Profile Send Private Message Find Members Posts Add to Buddy List Orange Level Access Joined: 18 Apr 2018 Location: Germanton NC Points: 1051	Post Options Post Reply Quote Red Bank Report Post Thanks(0) Quote Reply Posted: 26 Nov 2018 at 9:53pm
	Yeah that's what I fear, I can do a handshake but not everyone else can, it's the way I was raised. But to keep everything on the up and up I would rather have it written down and witnessed to keep it fair for both sides.

klinemar Members Profile Send Private Message Find Members Posts Add to Buddy List Orange Level Joined: 14 Sep 2009 Location: Michigan Points: 8053	Post Options Post Reply Quote klinemar Report Post Thanks(0) Quote Reply Posted: 27 Nov 2018 at 7:23am
	Hay is a longer investment than row crops. Now some crop farmers will argue otherwise. A hay seeding here in Michigan usually produces for 5 years if properly taken care of. Any land would have to be leased or a rental agreement for that length of time to return investment.

Tbone95 Members Profile Send Private Message Find Members Posts Add to Buddy List Orange Level Access Joined: 31 Aug 2012 Location: Michigan Points: 12160	Post Options Post Reply Quote Tbone95 Report Post Thanks(0) Quote Reply Posted: 27 Nov 2018 at 7:40am
	Agreed Mark....One of my landlords upped my rent a couple years back. I agreed, still fair enough. I asked for a 5 year agreement, oh no, not that long (now, they could have countered with an agreement to lease, option to change price type thing, but simply said no). I countered with 3 years? Nope, 2 years. OK, well, you'll never see me plant hay on your ground. Interesting looks on their faces!

DMiller Members Profile Send Private Message Find Members Posts Add to Buddy List Orange Level Access Joined: 14 Sep 2009 Location: Hermann, Mo Points: 33898	Post Options Post Reply Quote DMiller Report Post Thanks(0) Quote Reply Posted: 29 Nov 2018 at 6:50pm
	The Brome field we have is probably going to need attention after another season, the hard hot dry this summer after the long cold wet of last winter kicked it pretty hard. The renters I have do not have a lot of extra cash to replant or time just to mow cultivate and over seed so it will most likely fall back to myself for that, in which case the lease is over and I will attempt to raise the rate to cover the investment. Worst case I start running a few feeders myself and hay it off for sale.