Standard lease agreement for hay ground ?

[Named'em Tamed'em]

The neighbor contacted us about farming the brome grass hay on a percentage basis. sounds like I might get 30 percent of the hay and have to pay 30% of the fertilizer cost. 15 acres and he figures about 3 ton per acre for first cutting and a total of two cuttings.

How does this sound I really have no idea but I could use some nearly free hay?
Thanks Scott

Any examples of a lease to protect the landowner ?

 

[AllForage]

Around here it is strictly pay by the acre. I wish some form of share cropping existed here. Sometimes you hear of a 2 for 1 bale deal.

Your deal does not sound very good to me, are you doing all the "farming"?

 

[kenny thomas]

Is the hayland yours or are you trying to rent it? If you own it and are going to have to pay 30% of the fertilizer bill you had better put a pencil to that. You might be better off just leasing him the ground and taking hay as payment. Here landowner usually gets 40-50%. But we are on different ends of the world so I am sure things are different there. 3 ton per acre is really good hay here.

 

[Named'em Tamed'em]

It's my land, been sitting idle for 15 +/- years. Paid cash for it and it's about 8 hrs from home. I won't do anything but pay 1/3 of fertilizer for 1/3 of the hay. It's twice the distance to haul, but would be nearly free.

 

[dun]

Maybe check with your local extension office and see if they have information on common hay ground leases.

 

[12251HD]

I had a couple neighbors that had unused land that I limed and fertilized for hay for no charge. In addition, I bush hogged their scrub lands at no charge. Worked out well for all of us.

 

[Aaron]

So this is purely crop-sharing? No rent payment involved? If so, your getting a raw deal. My vote would be the other party absorb the entire cost of the fertilizer and you get 20% of production. That way he doesn't feel like he is working for nothing, and your benefitting from a little production and having the place looked after. Above all, it should not cost you a dime for what he does, so no-go on paying for fertilizer.

 

[Named'em Tamed'em]

Yes just crop sharing. Trying to make something work. It's not doing anything now. I'm trying to negotiate with the neighbor. Nothing firm , just communication. I'm up for no input and %20. Better than what I get now.

I'll help pull a few rogue trees to make it easier.

 

[M5farm]

I've seen deals like this go south with a long distance land owner. The farmer always took more than their share and it created some bad blood. If the neighbor really wants it the first year have his rent to be clearing it and get it into production. second year you could rent out right or have him sell your half of hay for rent. I cant see where hauling hay hrs is cost efficient.

 

[bigbull338]

the best thing for you todo is pay all of the fert cost.bale the hay yourself.and get all of the hay no partners.

 

[kickinbull]

Here, there is not a standard for leasing land. It's what ever both parties agree. Here, we used to share lease poor grass for 1/3 to land owner and 2/3 to equipment guy. Some even 50/50. 99% is short term agreements,once the land is cleaned up and improved upon, someone else jumps in with a "better deal" until it's mined of all the nutrients, so the land never gets taken care of. Got tired of those arrangments so we reduced animal numbers and also put into our land.

With the property being 8hrs away, I figure it will cost $80-100/T for trucking, either you do it yourself or hire someone.That doesn't include the 30% fertilizer cost you mentioned. I don't know your situation or have any clue what the market is like where you are at.

 

[Named'em Tamed'em]

I'm not real worried about the distance to haul the hay because the property is smack dab in the middle of the best turkey and deer hunting in the state. Not to mention the recreational value of Lake Roosevelt.

I think I'll suggest people to all the inputs in and I get 25% of the hay can't really go wrong it will improve the land.

 

[Aaron]

I've seen deals like this go south with a long distance land owner. The farmer always took more than their share and it created some bad blood. If the neighbor really wants it the first year have his rent to be clearing it and get it into production. second year you could rent out right or have him sell your half of hay for rent. I cant see where hauling hay hrs is cost efficient.

I agree. You want to make it as lucrative as possible for the first year or two in order to get someone competent in to make it work. Giving it to him free and clear for the first couple years is not a bad idea at all. I've had offers made like that to me and I while I greatly appreciated it, had to turn it down because I couldn't invest the time necessary to do a good job of it.

 

[thommoos]

Down here, it's a 1/3 split, the owner gets a third, maybe 1/2 if he fertilizes the hay.

 

[OklaBrangusBreeder]

If I had land with a view like that, I wouldn't lease it I would plop a new house down in the middle of it...

 

[Named'em Tamed'em]

OklaBB here is the view looking south downriver towards Grand Coulee Dam on the Columbia River I would to build a daylight basement house into the hills with 10 foot concrete basement walls.

The daylight basement would be an awesome garage.

But I need to find a way to retire first. :bang: :bang:

 

[Named'em Tamed'em]

OklaBB here is the view looking south downriver towards Grand Coulee Dam on the Columbia River I would love to build a daylight basement house into the hills with 10 foot concrete basement walls.

The daylight basement would be an awesome garage.

But I need to find a way to retire first. :bang: :bang:

 

[OklaBrangusBreeder]

darn impressive piece of property. Congrats on owning that...

 

[Tim/South]

I have a free lease on all the hay ground I harvest. I apply the nutrients according to the soil test. I am building the soil and improving the property.
The only place I do on shares (50-50) the land owner pays all the lime and fertilizer. We get 5 rolls per acre so it is a good deal for both of us.

 

[Named'em Tamed'em]

So brief synopsis if I can get 25% of the hay with no imput cost,I have to be ahead.