Can someone please explain the details of crop sharing hay?

[sdkubota]

I have 10 acres of native grass and just had it hayed. The person who cut, bailed, and hauled hay away did it for an even 50% split. He also offered to purchase my 50% at $100/ton which I agreed to. Now mind you this grass has stood for 5+ years without being cut. He has a hay grinding business. There were 50 1100# bales removed and I got a check for $1600.

 

[biker4jc]

Have you got someone to do this cutting and baling for you or would you be looking for someone to do this? The deal you strike will depend on who you strike it with.

 

[wd72588]

Alot of great replies. Thanks. I planned on going to a hay auction in Fenton MI to find perspective clients. Craigs List is always an option.

I have 10 acres of native grass and just had it hayed. The person who cut, bailed, and hauled hay away did it for an even 50% split. He also offered to purchase my 50% at $100/ton which I agreed to. Now mind you this grass has stood for 5+ years without being cut. He has a hay grinding business. There were 50 1100# bales removed and I got a check for $1600.

That would be great with me! Remember, I am lookin to stop erosion and at least keep my current income of about 3K a year. I'm not greedy, I'll take 3K and I'll plant. But If I had to pick up and stack my own hay I would require a bit more.

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).

Got her number? I got friends that will do the work for her and buy her beer!

But seriously, the replies are vary quite a bit but you guys have helped alot. This is flat fertile land in New Lothrop MI. A community that is focused on farming. Land is hard to come by out there but there isn't alot of hay. I assumed it was because soy, corn, and wheat payed more. Currently my land is rotated with wheat and soy. Farmer is great but I have a natural drain that mother nature provided across the corner of my land and I would feel alot better if it was anchored with a permanent crop.

 

[bigbull338]

you have gotten some good replys but none really answered your q.so ill try to answer it.alot of share balers like todo the 60/40 or 70/30.but to me share baling you get the short end of the stick,been there done that got hammered for it.your best bet is to fert an lime an estb the meadow.have it baled an pay the baling cost.then the hay yours to sell.

 

[greasemonkeyok]

+1 on what bigbull338 said.

 

[smstonypoint]

As others have mentioned, there are no standard crop-share lease terms. Here's a good discussion of leasing issues: http://www.calt.iastate.edu/briefs/CALTLegalBrief-LeaseLegalIssues.pdf

There are different tax consequences of crop-share lease terms according to your material participation as a landlord. See Tax Issues for Farm Rental Agreements, FR-0006-02

Steve

 

[WM75Guy]

Location, topography, type of grass and supply/demand will all contribute to the agreement. I paid $8 a bale for 200 bales of premium horse quality coastal today. Hay meadows are not used as pasture, weed abatement program in place and fertilized after each cut. Round bales are $70. I mentioned that army worms have been found in the area to my supplier, he went and looked at the pasture and there they were. As I left he was hooking up the sprayer hoping to get one more cut this year. Hay in East Texas is abundant this year with all the rain and more is forecast starting tomorrow.