Crop Share Analysis Tools, Part 2
Feb 24, 2012
As discussed in the previous blog, I promised a tool for measuring two partners in a crop share arrangement. As crop share arrangements increase in popularity, the need for tracking tools quickly becomes apparent to the people involved. Every situation tends to be unique in its own way. Some partnerships may be 50-50; others may be 60-40, while others could be 70-30. There is no right or wrong way to form partnerships so long as the information is transparent.
Here is an example of a basic tool used for calculating production cost between two individuals. This same type of format could also be used to measure the value exchange between a landlord and a tenant.
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Land…. Partnership Calculator
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Complete yellow boxes
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Individual 1
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Individual 2
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Price/Bush.
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$5.79
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Total Bush.
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37,000
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$5.72
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$5.85
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Yield
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185
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Total Bu.
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18,500
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18,500
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Acres Total
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200
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100
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100
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Acre $$$
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Total $$$
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% cost
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50%
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50%
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1
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Land Rent
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$300.00
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$60,000
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32%
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$30,000
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$30,000
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2
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Tax
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$0
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0%
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$0
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$0
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3
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mgt.
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$0
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0%
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$0
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$0
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4
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Int.
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$12.00
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$2,400
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1%
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$1,200
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$1,200
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5
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Ins.
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$25.75
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$5,150
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3%
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$2,575
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$2,575
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6
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Seeds
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$110.82
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$22,164
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12%
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$11,082
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$11,082
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7
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Fert. Lime
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$95.00
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$19,000
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10%
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$9,500
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$9,500
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8
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NH3
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$126.55
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$25,310
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14%
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$12,655
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$12,655
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9
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Herb.
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$22.87
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$4,574
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2%
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$2,287
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$2,287
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10
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Insect.
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$0
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0%
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$0
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$0
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11
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Mach.
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$135.00
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$27,000
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15%
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$13,500
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$13,500
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12
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Dry/bu.
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$0.25
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$9,250
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5%
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$4,625
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$4,625
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13
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Haul/bu.
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$0.24
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$8,880
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5%
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$4,440
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$4,440
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14
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Stor./bu.
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$0.04
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$1,480
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1%
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$740
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$740
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per/ acre
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Total cost
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Total Cost
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$926
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$185,208
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100%
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$92,604
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$92,604
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Cost per / bu.
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$5.01
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$5.01
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Total Income
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$105,820
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$108,225
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Gross Return
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$13,216
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$15,621
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Income per/ac.
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$132.16
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$156.21
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ROI
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14.3%
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16.9%
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If you're interested in getting a copy of this spreadsheet, send a request. I'd also encourage you to send me your comments and questions regarding this or any other type of tool for measuring, analyzing, or tracking your business.
