My son and I are partners on some land-50/50 ownership. Being retired, I do all the work and absorb all expenses. I cut, rake, bale, and feed the hay with my equipment. When the calves are sold, what would be a proper % for me and a proper % for him? I was thinking about basing the percentages on the number of round rolls fed,deducting an amount of his part of the calf money based on the number of rolls fed. After this deduction,then we would split the remaining profit. BTW the hay is cut off of land that is not owned by either of us. Anyone have some similar arrangements? Suggestions-throw me out some numbers!
My Part His Part
- Thread starter TSR
- Start date
Help Support CattleToday:
You kind of contradict yourself in this..."" My son and I are partners on some land-50/50 ownership BTW the hay is cut off of land that is not owned by either of us.""
Unless its a different part of land you are talking about..
As far as the profits go.. whatever works for you both.. BUT, when my Dad & I were in the business together (when I was much younger).. he just gave me a few hundred dollars when I helped him load out, or work the cows & calves. Then when I started helping him cut, rake, bale, feed, fertilize, seed.. (using his equipment) then he started sharing some of the sale money. When I started buying my own cattle.. and then eventually took over. I NEVER did ask for anything.. nor did I complain if he did not give me anything.. just the way it was.
Unless its a different part of land you are talking about..
As far as the profits go.. whatever works for you both.. BUT, when my Dad & I were in the business together (when I was much younger).. he just gave me a few hundred dollars when I helped him load out, or work the cows & calves. Then when I started helping him cut, rake, bale, feed, fertilize, seed.. (using his equipment) then he started sharing some of the sale money. When I started buying my own cattle.. and then eventually took over. I NEVER did ask for anything.. nor did I complain if he did not give me anything.. just the way it was.
slick4591
Well-known member
Sounds like you may be partners in the land but not the operation. I'd give him some rent money if he's not taking an active role.
bigbull338
Well-known member
heres what i do on the hay.i figure how meny bales my cows will eat over the winter.an then i shell out my part of the baling cost.example if your son feeds 50 bales a year an you charge $25 to cut rake an bale.then you charge him $1,250 for the hay.
lucky7chief
Well-known member
I am working with my dad in a partnership, only we own everything together. He is retired and does most of the work during the week. I help on weekends and take a few days off to bale in the spring. We don't worry about the labor part because he is retired, enjoys doing it, and is trying to help me out. Your situation seems to be a little different in that you own the equipment and do all the work. I would deduct all out of pocket expenses off the top before splitting any money. If the hay is yours, figure a fair value for that. Or, you can figure a fair value for baling the hay. If you want, you can make an allowance for your labor. After all that is taken out of the check, then split 50/50. Otherwise, you could be losing money on the deal. You also need to talk about what to if there is a loss. Things are a little different if you are trying to help him get into the business. You can be a little more generous then.
