The Leon reporter. (Leon, Iowa) 1887-1930, 1916-02-03
business Partnership on a Farm.

The Times-Republican's Mr.. G. p.
Wilson. who has travelled from farm
TO farm in central Iowa for tWel7e
years or more, has discovered new
farm lease in northern Iowa Waicn ID
a real partnership in all the proflts d.
well as in the labor OF the farm. u
may be the harbinger OF better times
upon the tenant farms OF Iowa. IL
spells cooperation Of the corpora
tisn type in big business. recoe-
nizes the rise in value of land as one
OF the profits in farming and dlVldes
it equally between the partners.
This lease is simple enough, too, 10
be popular. 1t starts with an agreed
value upon the farm of $135 per acre:
It could Just as we'll have been $2oo
had that been a fair value Tor the
land. At $135 the landlord invested
in the partnership his equity IN
quarter section of land or WI ,6oo
less a mortgage of $4,000 or INV
net The taxes and the interest on
the mortgage are considered as part
of the expenses of farming and are
deducted before profits are inquired:
All live stock, machinery and SEED
are invested in equal shares NY
landlord and tenant. Improvements
are paid for out of profits ana ap-
praised in the value of the land. me
tenant invests his labor and the land
lord his equity. In everything else
they share alike. If the equity OF
$4,000 is worth 6 per cent interest
the landlord has invested $3.50 per
annum against the tenants lapor or
$50 per month. That is What tne
landlord allows the tenant as Valu,
alton of his labor and it is a good
sum as wages 60 for farm managers
with house rents thrown in.
Equal partners in all properly
upon the farm with improvements,
costs of operation, taxes and interest
upon $4,000 paid out OF the business
the land is then appraised at the emo
of the lease and the rise in value al
yided equally or by the land beng
sold and the increase above $l5o al
vided.
Tenants who are to share in the
rise in farm values are going TO put
more fertilizer back into the farm,
thew are going to put paint on IN
stead of ripping boards off from the
buildings. Repairs and improvements
which are going to be paid out OF
partnership funds will be made at
minimum cost and will be considered
most carefully by both partners put
when decided upon will be most
cheerfully made for the value they
contribute to the farm is to be dlvid-
ed equally at the end of the lease.
The scheme is workable and potent
Of great Improvement in the tenants
farming. The only problem is the set
ting of the goal posts. what shail
the equity in the farm be END II IL Is
more than $4,000, what then snail
the landlord contribute as his onset
to the tenants labor? There is the
subject for negotiation. If per cent
upon the landlords real equity in the
land is more than fair wage for the
farm manager let the lease then pro.
vide that after all the above named
expenses have been paid the tenant
shall be paid a salary of $-for his
services that the landlord shall be
paid 6 per cent interest upon his
equity in the farm hereby, agreed by
and between the parties to be
and both parties can then divide all
other profits equally including the
Increased value of the farm.
Instead of being content with
per cent return upon farm invest
ments from Indifferent tenants and
rely upon an unearned increment OF
5 per cent per annum in the rise OF
the land owners of farms would be
assured of better farming with pos
sibly 6 per cent upon their land
equities and half the increment OF in
creased value 1t is as simple and
Just as the habit of corporations in
employing managers upon guaran-
teed salary and percentage OF prof
it's. It breeds longer leases. 1t in
PRODUCES business methods into the
farm partnership in the hope that
business efficiency will invide the
farm arshalltown Times-Republl-
can.