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Farm Rental Agreements

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					                                             Crop Share Tool
                                               Crop Share Tool
Updated August 2010

                                                                                                 Developed by:
                                                                                               Raymond Massey
                                                                                              University of Missouri
                                                                                       Department of Agricultural Economics
                                                                                         Commerical Agricultural Program

The Crop Share Tool on the next tab is designed to help farmers and landowners come to agreeable
lease arrangements.
See MU Extension Guide 428, Customary Farm Rental Agreements, for information on determing how to split output and production
expenses.


Suggested steps in completing the worksheet:
1. Obtain a budget or other estimate of the costs of production.
2. Obtain an estimate of the yields and prices for the crops produced.
3. Determine which inputs the landowner will share with the tenant and which one or the other will be responsible to
cover themselves.
4. Observe the percent contribution that the landowner is providing and compare it to the share the landowner is
5. The bottom of the worksheet gives total dollar estimates of what the landowner can expect to pay throughout the
production cycle and what they can expect to receive in crop revenues.

This worksheet is for educational purposes only. Its use is not supported by the University of Missouri and the user assumes all risks
                                                       associated with its use.

                                                                                                                           Design by Christina R. George
                                                                                  Crop Share Too
                                                                                Corn
Production per Acre                           Value    Landowner share     Landowner
and Land Value                                                      %         Revenue


Market value of land per acre                 1000
Estimated yield per acre                       150
Estimated price per unit                     $3.50
Estimated Gross Revenue per acre           $525.00                50%       $262.50
Number of acres                                 100                      $26,250.00



Major Resource                         Per acre cost   Landowner share   Landowner's
Contributions                          of production                %    costs per acre


Seed                                        $90.00                50%          $45.00
Fertilizer: materials                       $87.00                50%          $43.50
Fertilizer: application                                           50%           $0.00
Lime                                                              50%           $0.00
Herbicide: materials                        $30.50                50%          $15.25
Herbicide: application                                            50%           $0.00
Insecticide & Fungicide: materials                                50%           $0.00
Insecticide & Fungicide: application                              50%           $0.00
Crop insurance and consulting               $22.00                50%          $11.00
Custom harvest                               $4.75                50%           $2.38
Grain Hauling                                                     50%           $0.00
Grain Drying                                 $5.00                50%           $2.50
Machinery fuel and oil                      $22.00                 0%           $0.00
Irrigation: fuel and repairs                                       0%           $0.00
Machinery and equipment repairs             $14.00                 0%           $0.00
Labor                                       $13.00                 0%           $0.00
Defoliate                                                         50%           $0.00
Growth regulators                                                 50%           $0.00
Desiccants                                                        50%           $0.00
Management                                                         0%           $0.00
Other                                                   50%                     $0.00
Other                                                   50%                     $0.00
Other                                                   50%                     $0.00
Operating interest at 6.0%          $8.65               50%                   $4.32      6%
Total operating costs per acre    $119.90                                    $35.45 6.0%


Farm business overhead                $4.00              0%                     $0.00
Real estate taxes and insurance      $10.00            ####                    $10.00
Interest on land                    $100.00            ####                   $100.00
Machinery fixed costs                $52.00              0%                     $0.00
Irrigation fixed costs                                   0%                     $0.00
Total ownership costs per acre    $166.00                                   $110.00

Total Costs                         $285.90                                 $145.45
Landowner's percentage share of total contribution                              51%
Difference between landowner contribution and landowner share of output          1%

Total landowner revenue                                                   $26,250.00
Total landowner costs                                                     $14,544.88
Landowner net revenue: total                                              $11,705.13
Landowner net income per acre                                                $117.05
rop Share Tool
            Soybean
           Production per Acre                            Value    Landowner share     Landowner
           and Land Value                                                       %         Revenue


           Market value of land per acre                  1500
           Estimated yield per acre                         50
           Estimated price per unit                      $9.00
           Estimated Gross Revenue per acre           $450.00                 50%       $225.00
           Number of acres                                  100                      $22,500.00



           Major Resource                          Per acre cost
                                                   Per acre cost   Landowner share   Landowner's
           Contributions                          of production                 %    costs per acre


           Seed                                         $48.00                50%          $24.00
           Fertilizer: materials                        $48.00                50%          $24.00
           Fertilizer: application                                            50%           $0.00
           Lime                                                               50%           $0.00
           Herbicide: materials                          $8.00                50%           $4.00
           Herbicide: application                                             50%           $0.00
           Insecticide & Fungicide: materials                                 50%           $0.00
           Insecticide & Fungicide: application                               50%           $0.00
           Crop insurance and consulting                $16.00                50%           $8.00
           Custom harvest                                $4.75                50%           $2.38
           Grain Hauling                                                      50%           $0.00
           Grain Drying                                  $5.00                50%           $2.50
           Machinery fuel and oil                       $22.00                 0%           $0.00
           Irrigation: fuel and repairs                                        0%           $0.00
           Machinery and equipment repairs              $14.00                 0%           $0.00
           Labor                                        $13.00                 0%           $0.00
           Defoliate                                                          50%           $0.00
           Growth regulators                                                  50%           $0.00
           Desiccants                                                         50%           $0.00
           Management                                                          0%           $0.00
Other                                                   50%                        $0.00
Other                                                   50%                        $0.00
Other                                                   50%                        $0.00
Operating interest at 6.0%          $2.48               50%                      $1.24
Total operating costs per acre     $85.23                                       $18.12


Farm business overhead                $4.00              0%                        $0.00
Real estate taxes and insurance      $10.00            ####                      $10.00
Interest on land                    $100.00            ####                     $100.00
Machinery fixed costs                $52.00              0%                        $0.00
Irrigation fixed costs                                   0%                        $0.00
Total ownership costs per acre    $166.00                                     $110.00

Total Costs                         $251.23                                   $128.12
Landowner's percentage share of total contribution                                51%
Difference between landowner contribution and landowner share of output            1%

Total landowner revenue                                                   $22,500.00
Total landowner costs                                                     $12,811.63
Landowner net revenue: total                                               $9,688.38
Landowner net income per acre                                                 $96.88

                                                               Design by Christina R. George

				
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