I have read the FactSheet on 'Crop Share Leasing in Ohio'. My question is: My...
I have read the FactSheet on 'Crop Share Leasing in Ohio'. My question is: My farm is 300 acres which I have a 50/50 agreement with a local farmer where I supply him with 150 acres and he supplies the equipment and expertise. The crops are split down the middle at harvest. Each person is responsible to pay their insurance, fertilizer, seeds, and herbicides. At the end of this year's harvest I was given a bill for fuel, combining/harvesting, hauling grain, etc. Basically, he is charging me for custom farming my 150 acres. Our agreement was for him to supply the equipment, labor, and expertise to complete the planting/harvesting cycle. He is getting 150 acres for free in return for this. Is it right for him to charge me for custom farming my acres? Thank you.
Wyandot County Ohio
Historically in a 50/50 rental arrangement, the landowner does pay a harvesting and grain hauling charge for his/her half of the acres. A fuel surcharge is a relatively new concept and is questionalble since the harvesting and hauling charges should already have included the fuel costs. If you want to look at the custom rates for harvesting please see http://ohioagmanager.osu.edu/farm-rents/ohio-farm-custom-rates-2012/. If you feel that your current arrangement is not sufficient, you may consider a flexible cash rent or fixed cash rental arrangement. However, regardless of what you decide I would recommend a conversation with your tenant to discuss the arrangement, his farming practices, and set expectations for next year. There is a good example of a crop share lease at http://ohioagmanager.osu.edu/farm-rents/establishing-a-crop-share-lease-arrangement/