Hay shares on 100 acres

Reid1650 · Feb 20, 2011

Well it looks like I may have picked up more hay ground. The lady wants to do a 50/50 split but not pay any fuel or twine or upkeep on equipment. What is a way of talking her down to a 60/40 or 70/30 split? On top of no pay for fuel, twine, or equipment costs I cant store the rolls there I have to haul them away to the buyer which is about 5 miles down the road. It is an incurred cost either way just wondering how I could work her down or explain to her all those costs add up. Thanks the guys!

bobia · Feb 20, 2011

I would think 50-50 split would be fair, maybe charge for delivering her hay. only other thing I would ask for is half fertiliiser bill. Around here hay ground is hard to get rented for less

thurlow · Feb 20, 2011

What's the going rate in your area? Have baled many an acre around 'here' on a 50/50 split; landlord provided NOTHING but the hay. Either bought landlord's share at the going rate or left his/her share where it came out of the baler. Landlord had usually/not always fertlized the hay at their expense.

Ivan Grant · Feb 20, 2011

There is no way you can make any money on a 50-50 split.I would just offer her cash for her standing hay.

showcrop · Feb 20, 2011

I supply all inputs and pay $.25 per bale on some ground. on most I pay nothing. Hay sells for $4.50-$7.00 per bale.

Reid1650 · Feb 20, 2011

This hay will all be rolled

kyhayman · Feb 20, 2011

Tell her this is what you'll do, take it or leave it. It all depends on the local market will stand. Here, I wouldnt even consider anything less than 2/3 if I was going to do it and most years wont even do it that way, its paid by the bale, and paid well. 2 miles to the south I've got a guy who does some of mine on a 50/50 and buys my half with him furnishing everything and people standing in line to take the deal if he doesnt want it any more. The only difference is the county line. We know thats nothing more than a line on a map, but in most places around here its as far away as China.

For me, thats really where the break point is, at the 50/50 mark. As a land owner and farmer I'm money ahead on the 50/50 with him buying my half at list. At 2/3, I can usually make money as an operator. Though I've still got to market the product. Thats why Ive turned away a lot of that business and prefer payment.

Reid1650 · Feb 20, 2011

The hay is all already sold, I just dont like the 50/50 split it scares me and doesnt leave me much room. I was thinking of doing 2/3 and a 1/3 for her and haul her rolls to the buyer for $5 a roll.

LAA · Feb 20, 2011

Tell her the facts, if she does not understand or does not want to be reasonable then let someone else go in the hole on the deal. If you work yourself and your equipment for little or no return you will not do it very long. Do yourself a favor and start off only dealing with people that have the knowledge and the integrity to operate fairly. Most people don't care what it costs you they are only interested in what they will get out of it and then they are never satisfied.

Roy Ward · Feb 20, 2011

I made a deal last year and did a written contract with the man. 60/40 on the hay and feterlizer. Store the hay on the side of the field till it's sold. What ever you do get it down on paper what you will do and what she will do.

Tom-TX · Feb 20, 2011

I fertilize my own hay ground. A guy cuts, rakes bales it in 4X5 rounds. I get half for my cows, left in field, he takes half for his cows. I would not give out more than half. If I could not get half, then I would cut back on fertlize, graze the hay fields, and by hay from someone else.

In your case you should not have to move her half of the hay.

Tom

JDseller · Feb 20, 2011

I hope your lady can"t read. LOL Around here the common split is 50/50. It has been for many years. You are complaining about fuel and twine. She could complain about taxes and high land prices. You are just round bailing the hay I can"t see your cost being that much if the hay is any good at all. If it is not going to yield very much than it is not very good hay anyway. Just pass on the deal.

Tx Jim · Feb 21, 2011

There's no way I'd bale hay on a 50/50 split,70/30 maybe but not 50/50. I charged $20 for the last few yrs for a 1000-1100# rd ble to cut,rake & bale. But because of higher inputs I'm going to $22. 50/50 means in my half I'd have $44 in a bale in non-fertilized hay setting in the field. I just bought some 1000+ "fertilized" Coastal Bermuda for $37.50 with $5 more for delivery.

Nebraska Cowman · Feb 21, 2011

I will cut hay for half. But I wouldn't be hauling the landlords share anywhere. That's their problem. I do move the bales to the edge of the field if I have to.

kyplowboy · Feb 21, 2011

A person who is not worried about make'n money can pick up all the ground he wants. The world is full of folks who take on more and more ground to loose money on just so they can say they have more ground, just seems like these types of guys don't stay around long.

If you can't make it pencil out on paper you ain't got a snowball's chance of make'n it work out in real life. If you can't turn down a bad deal your full time farm'n career will be very short.

Good luck.

Dave

Ivan Grant · Feb 21, 2011

What happens when the hay gets rained on with the 50-50 split?

RodinNS · Feb 21, 2011

I don't think you can entirely figure on a split scenario for this. At least I wouldn't... There are places here were 50/50 would be a very good deal and other places where 70/30 for me would be an incredibly BAD deal. Each situation is different. Best suggestion I can make to you... get a solid handle on your costs both hourly and per bale, then figure out what the land will make, then low ball that. If it looks like a decent deal for you, figuering all of your costs in... then go for it. If it doesn't pencil, tell her so and walk away. If she bends... then it's open to discussion. Just be sure it doesn't include her cutting corners on fertilizer or that type of thing...

Rod

Nebraska Cowman · Feb 21, 2011

both halves turn brown.

GRJ · Feb 21, 2011

You will loose your azz if you do anything less than 1/3-2/3.I wouldn't pull in the field for less.

JDseller · Feb 21, 2011

I guess we would need to know where you are located and what kind of hay we are talking about. I live in North-east Iowa. Most of the hay here has a percentage of alfalfa in it. Also even the grass hay yields well. Plus here you will get several cuttings even in pure grass hay. We also have a very good hay market here. There is a hay auction each week at the livestock sale barn. Usually 1200-1500 tons.

Like I stated below here 50/50 split is fair. In many areas it seems that is not fair. So your question can really only be answered with more information.

Reid1650 · Feb 21, 2011

It is grass hay that will be rolled and sold to a cattle producer.

Reid1650 · Feb 21, 2011

Im in central ky

730 virgil · Feb 21, 2011

bad deal even if the buyer would haul the hay away when it is baled.
50/50 means all costs split down the middle

Hay shares on 100 acres

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