Can someone please explain the details of crop sharing hay?

[wd72588]

Background: I currently rent 33 acres out in a nearby farm community. I am concerned about erosion and thought planting a stand of hay would be an answer to my problem (feel free to share thoughts on that idea also) as the farmer does not seem to think its an issue. I do not have the resources or time to hay this myself so I thought crop sharing would be a solution. From what I gather it is usually a 60-40 split but I do not understand whose responsibility it is to plant and fertilize (maintain) the crop. I could find time to pick up my share and have barn space to store it. I figure my TC35 could handle round bales if necessary. I only get $80 an acre rent now so the money should be better(?). Figured 150 bales per acre per year leaving me with with around 1900. (all figures are pure guessing and speculation as I do not have much knowledge in this area). Finally, it would put me in a more active role in protecting my land investment.

So: I am hoping anyone who has had experience in this area can fill me in on the details and pitfalls of this type of relationship. Or if they think I should just stick with my current arrangement. Thanks in advance. K

 

[thatguy]

My neighbor entered into some sort of agreement about cutting hay on about +60 acres of land..

The neighbor pays for lime to be spread annually

The hayer pays for the fertilizer, and all expense of cutting and processing the hay

My neighbor gets a % of the hay profits (not sure what happens if the hayer keeps the hay for self use)


knowing my neighbor, im sure he researched this way too much.. He is happy with the situation..

Brian

 

[Ed of all trades]

I would think there are no set rules. I have had a deal with a land owner where I cut 50 ac of hay and he got 100 bales that I stacked in his barn I did all fert. and lime, another got 1/3 of the round bales and he did all fert. and lime. Others were just glad to get the field clipped and gave me the hay. Part of it is the market for hay. Is there more hay fields around than people who want to cut them, or is hay ground in short supply? Lot of things effect the answer.

 

[wd72588]

I am looking for examples. I am not a horse lover nor do I raise cattle so my knowledge in this area is limited. So I thought I would find some experts here to share their story. It seems that hay is at a ridiculously priced at around $6 a bale right now. Perhaps a result of the drought and energy prices. I realize that contracts might vary. I guess am am looking to see if my expectations are unreasonable. If I cannot come up with a solution that satisfies me on the erosion issue I will just auction it off and not worry about it anymore. I live in mid-michigan if that helps.

 

[Clint S]

I know around here if the hayer does all the work and covers all the expenses the land owner may get 10 to 20% of the take. So in your situation at $5 a bale that would be 5k for no work at all. Depending on local costs of seed, fertilizer, lime, fuel, labor, transport and storage they hayer may have that much or more in expenses.

 

[Gary Fowler]

If the renter does all work and furnishes all the expense, the most a landower can expect is 25% of the crop or rent for cash as you are now doing. I dont know that this holds true for hay but is par for row crop land. Around here it is hard to get a hay meadow cut and baled period, just too much grass normally. This year has been no grass to bale due to the drought. Square (60# bales) are going for up to $15 each and 4x5 rounds about $80 or more. At least that is asking price on Craiglist. BIL bought a couple bales for his goats last week from the Co-Op for $12. We have been getting a little rain lately so there may be some fall cutting but the quality of hay wont be that great.

 

[RickB]

If the tenant is going to berar all seeding and establishment costs the deal needs to be one that covers a period that will allow him to recoup his investment. Around here that would mean 3-5 years.

 

[zzvyb6]

At the extreme opposite end of the spectrum, I cut and bale a neighbor's back field and sell all that hay to another neighbor of mine who has horses. Otherwise, They pay me to cut it down and keep it trimmed. I chose to bale it because the buyer helps me put up my own fields. AND, she wears a halter top, short shorts and cowboy boots when she helps (and gloves of course). Somehow, hay chaff never gets into her boots. Hasn't changed her general hay helping outfit in 24 years. Last time she was here a month ago, she had spurs on. As far as deals go, I came out on top.

Go figure....

 

[D7E]

We've had lots of renters happy to do 50/50 deals on alfalfa and they do everything , we just stacked our half. renters seem to miss weather windows and spoil hay too often though so we bought our own machinery .

 

[greasemonkeyok]

Background: I currently rent 33 acres out in a nearby farm community.

I assume this means you own the land and rent it out to a third party.

The quality of the land is going to affect the value greatly. Rocky hilltop with shrubs won't bring as much as flat river bottom. Also, the market varies from state to state. Kinda hard to answer without knowing more about the location and condition of the land. Alfalfa brings more than native grass, etc. $80/acre in Oklahoma isn't bad for ordinary pasture.

D7E makes a good point also.