Many farms are ruined because their owners have not understood the drawing up of a proper agreement and thereby including proper safeguards.
Many retired farm owners are located in the various small towns and cities with nothing to do who have rented their farms for cash and they have nothing to do but worry about the way the farm is going back. Many tenants follow a soil mining plan—get out of the farm all that is possible today and let tomorrow take care of itself as tomorrow the owner will have it back.
The following kind of a rental system has been followed with good results: This owner rented his 400 acre dairy and stock farm and it paid him in 1917—7.89% on a $25,000 investment, after all expenses had been deducted. At the same time his land has improved in production and value. Under this plan the tenant’s share amounted to $2,838.60 while the net earnings of the owner was $1,974.12 which was exclusive of his personal, managerial labor.
The lease contained the following conditions as to owner:
- Active management of farm rests with the owner.
- Financial and business operations are handled by owner.
- Owner furnishes all seed and one-half of fertilizer.
- All horse power, machinery and equipment.
- All feed except one-half ensilage which tenant furnishes.
- Twenty-five to thirty dairy cows and one registered bull.
- Tenant receives one-third of gross income and owner two-thirds of gross income.
- Which includes one-third share in all young stock.
Tenant
- Provides all labor which consists of own service and two hired men by the year and labor necessary for harvesting and housing crop.
- Bears one-third of stock loss.
- Pays 6% interest on one-third of value of cows.
- Keeps machinery and equipment in good condition and pays for necessary repairs.
- All buildings to be kept in good repair.
- Holds in check all weeds and filth along fence rows and in field.
- Pays one-third of cost of delivery of milk to city distributers.
- Furnishes one-third of fertilizer.
- Furnishes one-third of thrashing and silo filling bills.
Lease Covers
- Apportionment of undivided property or improvement if at any time contract should be terminated.
- Runs for 10 years but may be terminated at the end of the year.
- If tenant does not live up to agreement, farm automatically returns to owners complete control.
Owner can then hire such labor as is necessary to carry on business to end of year at which time lease will expire and tenant’s heirs or assignees would be paid their net share of the income due after expenses are paid.