hay on shares

Fordfarmer

Well-known Member
A neighbor is wanting to make some of my hay on shares. What % typically goes to the landowner if the neighbor does all the work - mow, rake, and bale (round bales)? We'd each do our own hauling. What % if we both mowed?
 
Around here people will almost pay you to make small fields and bale it. They think they're getting off cheap after they get a price from their flyby landscapers, and I rake it for them and haul it away! See what a landscaper charges to mow and rake a field of fescue or orchard grass and weeds.
If it's on shares I base it on landowners input, if they fertilize 20%,the more they do the more they get.
 
We are comfortable with land owners share of 25%. I?ve seen it as much as 50%. But not with me. It?s gotten where land owner just wants it taken off rather than trying to find someone to bushhog or have to pay.
 
Same down here in central VA I get all the hay I want to cut for free,the landowner gets a real estate tax break from the county and doesn't have to pay someone to mow it off.Hay is cheap so it wouldn't pay unless I had livestock to feed it to as the hay market is flooded. A couple places with small odd fields I looked at if I do it I'm going charge plus get the hay.
 
Guess I could have included more specifics...
One field, about 35 acres, and we both farm. He has beef and I have a dairy herd and raise a few steers. So the hay would get made wether he's involved or not.
 
I think it really depends on location and quality of the hay. I would never sell on shares for less than 50% of the hay put away which I have done sometimes with a fertilizer surcharge. One time I sold 25 acres small squares on shares to a neighbor and after he was done he said his half was more then he thought the total field would yield. Another time I sold to a different neighbor 35 acres of second crop alfalfa/grass on shares and they small square baled my half and big square baled their half. They hired the big square baling and the operator said most of what he baled of 2nd crop yielded 1- 1 1/2 3'x3'x8' bales and mine yielded over 2 1/2 squares/acre. So I think it depends on the hay.
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And I provide all crop inputs.
This is n/w WI. Right now, we're talking about 1st crop, but 2nd and 3rd would be options, too.
 
Here's a scenario I use with one of my neighbors. I mow, he rakes then he helps me bale half with my baler and I help him bale half with his baler. If it needs rake more then once that is on his dime. We are both satisfied.
 
I make hay on shares and split it 50/50 with the land owner. We even split the fertlizer. But this is on good land that would rent for $250 or more per acre in south west WI. Tom
 
If I do all,2/3 if decent hay. If poor/crappy hay,I'd need more.If he mows and hauls,then 1/2 would work. Shares or not,I'd need to make at least enough for fuel,etc,and wages.
 
Wow! Location, location, location. Our hay market isn't what it was 5-6 years ago, but is fairly strong after two very wet years that made it almost impossible to make dry hay. There's plenty of competition for land, either buying or renting, but maybe somewhat less for hay ground. But there is less hay ground available, too. Fewer farms, especially dairies, more emphasis on cashcropping.
 
Working long hours and out of town a lot , I don?t have time to cut hay and sold my equipment years ago, wife no longer has horses, I used to lease my property but for about 10 years now just let the neighbors cut my 22 acres of Bahia grass, give it to them for free as long as they?ll keep it cut, we had a couple days of sunshine and they got it done about two days ago, they had 58 round bales when through this time, had to skip some wet spots in fields due to so much rain we?ve had
 
I do all of the work and pay for all of the fertilizer. Landowner gets 1/3 of the hay, then sells his 1/3 to me. The fields are close to home.
 
When I had hay ground in Iowa quite a few years ago, I did nothing and got half, the baler got half. (He seemed to have a knack for predicting the weather -- out of 11 cuttings, he managed to get nine cuttings rained on. Straw from an oats crop lay on the ground until spring. I finally gave up.)
 

Reading the replies so far, it looks like the answers vary a lot according to location.

I'm in SW Missouri and have about 25 acres of hay on the farm. We don't have any cows anymore, so I don't need the hay. My neighbor (beef farmer) puts up my hay, doing all the work, and gets 2/3 for that. I then sell him my 1/3 at current market value. He gets hay close to home, that he knows the quality of, and we are both happy.
 
Thanks for all the comments. Looks like it really changes across the country. Like a couple of you said, it used to be 50/50, but not any more. Quality-wise, I wish it had been made a week or two ago, but rain has been slowing us down - 4 1/2" last weekend alone. It's still good beef and dry cow hay, and clean - very few weeds. I expect tonnage to be similar to last year, when we got more than 80 4x6 round bales from that field. The guy I usually hire to round bale says I consistently have heavier yields than most of his customers.
I'm going to see what he says about 40/60, and can do part of the mowing if that isn't agreeable.
 
I would say your idea of 60/40 should be a good one for the both of you. I would expect your hay to be good since your a dairy farmer.

I have some shared hay and it varies form 25-50% depending on the type of hay, yield, and owner investment. The 25% would be low yielding grass/CRP hay that the owner does nothing. The 50% is good high quality hay with the owner splitting the fertilizer and lime with me.
 
Going rate in my area is 2/3s got to the guy doing the work and 1/3 goes to the land owner. Been that way where I am since back in the early 80s
 

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