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Leesburg, Ohio | As some others have said, there is no "correct" answer. The answer is whatever you and the landlord can agree on.
Regarding what is "common", that can be a wide range as well. And different parts of the country have different "normals".
That is why it is so helpful to list a location in your question, or better yet in your permanent info. Does't have to be exact, but at least what part of what state.
Our "normal" here, is we traditionally have delivered the landlord's share to the nearby country elevator at no cost to them....goes along with the tenant furnishing the equipment.
It was also common in our area for tenants to charge for a share of the combining years ago. But our landlords build grain bins, so we stopped charging for harvest to offset their furnishing the bins.
We still hauled to local elevator with no charge.
As markets changed, and we invested in more and better trucks/semis, we now charge a modest rate when hauling to the city terminal....30-60 miles in our case.
We justify that because if we did not have our own semis, we would hire it hauled to the city terminals (and did before we had that capability) and the landlord paid their share of that hired trucking. So now they pay us a lower rate.
It also depends greatly on your locale, as I said earlier. 4930's situation in the Dakotas where he is more than 20 miles to a "local elevator" and 200 miles to a terminal, is quite different that our region, where there are multiple large terminals within 60 miles, and locals 5 miles down the road from the farm.
It also depends on just how competitive it is to rent ground in your area. If very competitive, paying those costs yourself might make the difference between farming that farm or not.
The question was raised about when the landlord can sell their grain vs when you sell as tenant. It has always been our practice, and is specifies in our share rent contracts, that shared grain will be delivered together and divided evenly at the point of sale. This means that we have to deliver both shares at the same time on the same truck. But it does not necessarily mean that both shares must be sold at the same time (although we normally do sell at the same time).
We have an understanding with one of our share landlords that we will do all the marketing of their share with ours. With another landlord, we usually talk frequently, and discuss marketing strategies, and plan ahead for cash sales and/or contracts, so that landlord has some input in the marketing decisions. In all cases, we use both cash sales and cash forward contracts or HTAs at different times.
Not all landlords want the same thing. | |
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Trucking landlords crop on shares
