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Central Kansas | Here in Central Ks the 40/60 is not common, but there are a few working with that agreement. In all the instances I am aware of...the scenario would be something like this: landowner decides he wants alflafa on 80 acres. He prepares the land, fertilizes it, then buys the seed and plants the alfalfa. If a stand is established, the renter then enters the contractual deal at 40/60....with the landlord paying 40% of weevil spray, weed spray, etc. and getting 40% of the crop PLUS the government payment. This is generally a short term deal (like the life expectancy of alfalfa) and seems to work well for those landowners/tenants.
Various agreements are made about the hay....tenant takes it all and markets owner's 40%, they split the hay on these ratios and each use it as they wish, tenant buys the landowner's share at an agreed upon market price, etc. Evidently, there are those we feel this split is fiscally sound enough for a pre-set interval. | |
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40/60 leases
