Irrigation Crop-share and Cash Rental Arrangements for your Farm

Kansas State University - Larry N. Langemeier

Type: PDF
Knowledge level: Intermediate

Farm Table says:

Although a very old document, provides genuine insights into crop profit sharing and sharefarming that is lacking across Australian resources.

This US-based resource was written way back in 1981 (updated in 1996), but provides useful comparison between crop-share (sharefarming/profit share) and cash-rent (leasing) side by side.

Five principles are put forward (and explained at more length in PDF):

Five important principles to follow include:

  1. Variable expenses that increase yields should be shared in the same percentage as the crop is shared.
  2. Share arrangements should be adjusted to reflect the effect new technology has on costs and returns.
  3. Both the landlord and tenant should share total returns in the same proportion as they contribute resources.
  4. Tenants and landlords should be compensated at the termination of the lease for the undepreciable balance of long-term investments.
  5. Communication should be maintained between the landlord and tenant.

The PDF is 23 pages long but worth considering if entering into a crop-share/profit share arrangement.

1996 - United States - Kansas State University - Larry N. Langemeier
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