Splitting Hay Field

[ncboy34]

I picked up another hay field to rent this year and am fixing to start cutting it. Someone I know that I sale hay to occasionally is interested in anything that I am not going to need. We agreed on splitting it 60/40 and he is going to help cut and rake while I cut the rest and bale all. My question is from those of you that do this a lot, what is a fair price to charge for the 40% that he gets considering the extra help he is lending. I'm at least wanting to get my rent out of it. Around here good fresh hay out of the field will for around $25-$30 a roll.

 

[Banjo]

I'm unclear......splitting the hay, the field 60/40? Who gets what? $25 to$35 a roll for what size bale? You buying his share of the hay? Or you selling him your share of the hay?

 

[Jabes0623]

The fairest way would probably be something like...

His 40% is worth $10,000 full price.

He did 25% of the work.

He pays $7,500.

Obviously you fill in your own numbers, I just used nice easy ones so I didn't have to break out the calculator lol.

 

[Rajela]

Are you splitting it 60/40 or are you selling him 40%. If splitting then 40% is his pay for his labor and equipment cost. If your selling him 40% then I like to figure that Baling is 60% of cost, raking 15% & cut 25%.

Here I get $20.00 to cut, rake & roll. Break down $12.00 roll, $2.50 rake and $5.00 cut based on a 2 roll per acre rolling 4X5 rolls. If I am just cutting it is by the acre and it is $12.00 an acre.

If he is just operating your equipment then I would agree on a good hourly wage and pay him by the hour.

 

[ChrisB]

To my knowledge a common split between a land owner and tenant is 50-50. Since you are paying the rent and are essentially the land owner AND you are taking on 60-75% of the cost of putting up the hay by cutting half and baling all of it, I think it would be generous to offer him 25% of the hay. Fair would probably be closer to 1/8. Unless I am misunderstanding your question.

 

[ChrisB]

Disregard my post I re-read your question and I get it now. Go with Rajela's post and calculate it out. But you might want to double check with the guy and make sure he's not expecting 40% of the hay for cutting and raking.

 

[SoILcattle]

I agree with Chris b , your description of agreement I don't fully understand. First thing is to make sure he doesn't think hes getting 40% for the work ( this is what is sounds like in your post). Also make sure everything is agreed upon before you start.

IMO I would just do all of the work ( it sounds like you have all the equipment) and just sell it to him, no confusion this way.

 

[Brute 23]

If him "helping cut and rake" is equal to you cutting and baling then the labor is basically a wash.

I would take rent, fert, herb, and any other expenses (excluding baling cost) and divide it by the number of bales harvested. That will give you a cost per bale and you can charge him what it cost to produce the bale.

If you baling and cutting labor is worth more than his labor add that in and get a cost per bale.

Lastly, if you want to profit off the deal add that to the cost.

You can compare that actual cost to the market cost if you would like. Then yall will both know if it's a better value to cut your own hay.