FATHER AND SON FARMING AGREEMENTS
{N SOUTH CENTRAL M!CH!GAN

“min for flu Dogma af M. S.
MlCl-flGAN STATE COLLEGE
Harri Sfaniay Wilt
1950

0-169

Date

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III II III
II II III IIIIIII I IIIIII IIIIIIIIIIIIIIII I
_3_1%93 01071 1541
' This is to certify that the
thesis entitled
1:1“ : uni 1m Yen‘nzirtg .'.g;reer:ents
1n diutn Central Hiuhigan

presented by
Farry S. Kilt

has been accepted towards fulfillment
of the requirements for

ET. 5. degree in-Fz;;1;; 2.7.533 ..’aé:'e:orr.rr2t

Z a my

Major professor

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PLACE IN RETURN BOX
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Are: 4“ gears Religion: Trotestanf
Birt.h“lace: Isanella Count' Tiehigqn Height: 6 ft. 1 in.
jaflenqlit;: Aficrioan Lei~ht: 1”5 lbs.
Aarital status: married . ulth: {nod
L'VJA“IQJ
3013“fin “ijh tenool Coleman, ii?) Iifan: "r9 ..... “ta,ed 1329.
lCPlfflfi fitaoe Collefe, Two ;ear enern]. A ricultural Short
Course, 1C32. .aehalor f Science A“ri.crxlture: 193 7.
“ajor: Animal ' Isiandr' and Igri multiral Education.

AFFILIATI$
Alpha Zeta Agricultural Honorary

Earn and reared on a 120 acre genesal farm in :83‘6113 County,

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5.] 0113427331 0

One gear, 133.73, a. T)? r eminent Eta}. ion,
Chutham, Richigan.
3ne 3,81, 1533, en a 250 acre dairy farm in Inghnm Counf;,

Liehigan.

as a vocational a ricultr e1 teacher at

T'Vo He 18, 1557-1938,
2 MB fir, lichigan.

Eleven “eers, 1189 -19 at Lichigan State College - ten years
in'fl e Lepaxtru nt of :hort Cortrses and one year in Abricultural
.IIJCOTLOISiCS Q

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The author Wishes to exgress his a

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Harry Stanley Wilt

IN RODUCTION

Farming in 1950 is big business. A generation ago, 120 acres
was considered a fairly large farm in Michigan. Forty and 60 acre
farms were quite common, but today one must search to find an effi-
cient commercially Operated 80-acre general farm. A IZO-acre farm
is a small operation today, and unless very intensely Operated will
not afford full employment for more than one man. Many Michigan
farms have been increased to 160, 240 acres, or larger, in order to
more effectively use modern machinery and equipment. Such size
units generally become two-man farms.

Many jobs on a famm require more than one man, and two-man
units are quite generally recognized as being more efficient than a
one-man operation. This means the Operator must depend on hired
help or family labor to supply the equivalent of an extra man. With
employment Opportunities in industry and a 40-hour work week, labor
is attracted to the city. The difficulty of employing capable help
to do farm work almost eliminates that possibility.

This point is well illustrated by the case of a young Michi-
gan farmer Operating several hundred acres with large dairy, poultry,
and cash crop enterprises. His family is too young to help with the
farm work. His Operations are such that he needs two full-time men
in addition to himself. Recently, one of his employees, WhO‘WaS re-

ceiving the use of a house, er1, lights, milk, eggs, meat, and a

garden spot, in addition to cash wages of $200 per month, left to

take a job in the factory. The hired man admits he won't be able to
save much by working and living in the city, but he has only to work
40 hours per week and is out of work in the middle of the afternoon.

Family help may prove a partial answer to this problem, but
unless farm boys are kept interested in the farm.and can see a future
fer themselves there, they too are attracted to the regular pay and
short working hours Offered by industry. When this happens, the father
is Often unable to Operate the farm in an efficient manner.

On the other hand, a young man who attempts to operate a farm
alone may be under-financed, and fOrced to spend some of the most pro-
ductive years of his life Operating a unit of inefficient size.

Most farmers take considerable pride in their achievements, and
hope to have heirs who will carry on with their plans and ideals
‘when they are no longer able to take an active part in the Operation
of their farms. The actual shifting of responsibility and ownership
from one generation to the next presents several problems, and offers
a real challenge to those interested in the future well-being of ag-
riculture. In many instances, such a shifting Of responsibility and
ownership is made possible by having the son* work into the farm
business and later assume full responsibility for its operation. In
this shifting of responsibility from one generation to the next, many
adjustments in the farm home and business are necessary.

This report presents information about situations where father
and son working agreements are being used successfully to shift farm

Operating responsibility smoothly from one generation to the next,

 

*The term, son, as used throughout this report is intended to include
son-in-law, grandson, or non-related junior-members of a farm business
arrangement.

and with a minimum loss in farm productive efficiency.

Need for the Stgdy} The problem of developing some type Of

 

working agreement arises whenever it appears desirable for a son to
farm in cOOperation with his father. This appears to be a common
problem in most types of farming or ranching areas in the United
States. Interest in this problem is increasing, and in nearly every
state thought is being given to methods of helping fathers develop
satisfactory working relationships with their sons.

' ring the past 15 years, vocational agricultural teachers and
agricultural college workers have been receiving an increasing number
Of requests from fathers and their sons for help in planning suitable
farm Operating agreements, or improving those already in Operation.
As farms become more highly mechanized, it is possible for the farm
family to Operate a somewhat larger business. This, coupled with the
large investment required for a.young man to Operate an economical
size unit, may be reasons for the increased interest in farm family
working agreements and the demand for help in planning them.

Scope of the Study: The field of study dealing with father

 

and son relationships on the farm is of considerable scOpe from the
standpoint of time. It divides itself into three distinct periods
in the life of the son:

(1) The pre-partnership stage has its beginning early in the
life of the son. As a snail child, the son begins to de-
velop habits of sharing experiences with his father.
Later, 4-H Club and F.F.&. projects are begun. These pro-
grams may be expanded until the son has acquired consider-
able experience and has built up a sizeable equity in

livestock and equipment.

4

(2) The partnership stage includes the period from the time
the son is through school and ready to devote full time
to farming Operations, and that period in the father's
life until he ceases to take an active part in the Opera-
tion and management of the farm. It is during this peri-
od when father and son are both active in the Operation
of the farm business. Both are contributing labor, capi-
tal, and management. Some type Of farm Operating agree-
smnt which provides fer a fair distribution of farm income
to father and son is important during this period.

(3) The post-partnership stage begins when the father retires
from.active participation in the farm business, and the
son assumes full responsibility for operating the farm
business as a tenant or owner.

For the purpose of this report, consideration'will be limited
mainly to the second period, or partnership stage. A discussion of
problems in the pro-partnership and post-partnership periods will be
included only as they have a direct bearing on the problems during
the partnership period.

That period which precedes the actual partnership arrangement
is an important one. It is worthy of major emphasis. In it, the
foundation for successful partnerships may be laid or the opportunity
to build them may be lost. If a father and son fail to develop sat-
isfactory working relationships during this period, the possibility
of later trying to work tOgether amiably is limited.

Also of great importance and perhaps even more difficult to
do anything about, is that period when the father ceases to make

much contribution to the father and son farm Operating arrangement.

5
Turning the reins over to younger hands is not easy for some fathers.
It is also difficult for the son to tell his father that he is no
longer able to make a contribution. Arrangements for the son to take
over the Operation Of the farm in the post-partnership period should
be considered at the time an Operating agreement is set up.

Objectives of the Study;

 

(1) To determine the nature of successful father and son farm
Operating agreements in an effort to discover possible
strong points and weaknesses in them.

(2) To develop ideas for improving father and son farm Opera-
ting agreements based on the experiences of successful
arrangement 5 studied .

Hypothesis: Certain conditions are considered essential to

 

the successful Operation of father and son farm business agreements.
It is believed that these conditions apply to father and son farm
Operating agreements on farms in south central Michigan.

It is believed that in successfully operated father and son
operating agreesents in south central Michigan the following condi-
tions exist:

(1) Both the father and son and their families are interested

in farming .

(2) That separate housing is provided for each individual

family.

(3) The father and son and their families are able to work

tOgether and get along well with each other.

(4) The father and son both feel that working tOgether is a

desirable arrangement for both of them.

(5) The son shares fullr in a knowledge of the farm's operation

and finances.

(6) The farm business is large enough to provide sufficient
income for a satisfactory standard Of living for both the
father and the son and their families.

(7) Father and son apply good farm.management practices in-
cluding a system of farm records.

(8) The entire farm business is included in the Operating
agreement.

(9) A definite Operating agreement is followed.

(10) ”he farm Operating agreement is in writing.

PROCEDURE

Review of Literature: Letters were mailed to all of the states

 

requesting literature on the subject of father and son farming rela-
tionships. It was felt that ideas from other states might have real
value in developing an improved working agreement.

Replies were very gratifying and while only a limited number
Of states were able to supply a bulletin on the subject, much mimeo-
graphed material, particularly agreement forms, was made available.

In addition, staff members of several colleges expressed interest in
the study, and indicated a need for further information on the sub-
ject in their respective states. Such correspondence helped point

out the great importance Of the problem, and gave increased encourage-
Hent to work toward its solution.

There was a great deal of similarity in the farm business Op-
erating agreements used in different states. A number of states re-
ferred to Professor E. E. Hill's work here in Michigan as outstanding.
They were using Michigan Bulletin 350 as a guide for much of their ef-
fort to develop satisfactory father and son farm operating agreements.

Several states were writing publications, and others had just
recently released publications dealing with father and son farm Op-
eraiing agreements. Many of the plans try to avoid the liability of
partnerships, some try to deveIOp a type of‘agreenent which will not
be interpreted as a partnership. Others make a statement in the
agreement that is is not the intent Of‘the agreement to establish a
partnership, and that neither party shall be liable for debts or Ob-
ligations incurred by the other without written consent.

It sacred to be the Opinion of most workers that farm Operating

8
agreement plans served only as a guide, and that some alterations are
necessary for most situations. A plan could be worked out by the fa-
ther and son with.some help fronxan extension specialist, or other
person qualified to advise the parties.

Ehgufiampggz Personal interviews with a number Of fathers and
sons who were working together in the operation of their farms seemed
to be the most desirable way to gather information about father and
son Operating agreements in south central Michigan.

It was decided to restrict the study to farms where father and
son were both devoting full time to the farming and sharing in the
expenses and/or income of the farm business. The possibility of in-
cluding both successful and unsuccessful cases in the study was con-
sidered.

Although it might seem desirable to discover why some father
and son operating arrangements have failed, it appeared inadvisable
to attempt such a study in view of the difficulties which were likely
to be encountered. PeOple usually do not care to discuss their fail-
ures. Many such arrangements were likely of such short duration that
little could be gained from a study of them. It was believed that in
many instances the son had left the farm.and would not be available
to present his side of the story.

.A study of the characteristics of successful father and son
farm partnerships appeared to Offer the most satisfactory approach.
Information about successfully operated farm partnerships in south
central Michigan'would be applicable anywhere in the state. Fathers
and sons in this area, as well as other parts of Michigan, could be
encouraged tO consider carefully the essential characteristics Of‘the

successful father and son partnerships included in this study.

9

It appeared unnecessary to have the cases included in the
study representative Of any particular group. It was important to
locate situations in which father and son were working together suc-
cessfully under a definite farm.business Operating agreement. Their
location appeared relatively unimportant.

County agricultural agents were asked for a list of‘names Of
fathers and sons who were working together successfully, and would be
'willing to cOOperate in supplying inforuetion about their farm.busi-
ness arrangements. In formulating such a list, the county agricul-
tural agents were undoubtedly influenced not only by the fact that
these fathers and sons were successful farmers, but also good citi-
zens and cormunity leaders.

bbthods Used: From.the lists of father and son partnerships

 

supplied by the county agricultural agents, about 75 farm calls were
made. On 52 of these farms, a partnership appeared to exist. That
is, father and son were both active in the business and Operating un-
der a rather definite farm.business Operating agreement. Both were
contributing labor, personal property, and a share of farm expenses.
Both were receiving income from part or all of the farm business.
Questionnaires were completed on 52 farms.

A feature of the questionnaire which aided materially in get-
ting complete information is that it is divided into three separate
parts. Part I relates to general information about the farm and busi-
ness agreement. Part II includes questions of a more personal nature
to be answered by the father. Part III is veny similar to Part II,
except that questions are directed to the son. Where more than one
son was included in the business agreement, each son was asked to fill

out a separate cOpy Of Part III.

10

All questions in Part I were asked Of either the father or son
or preferably both. By the tine Part I Of'the questionnaire was com-
pleted, the respondents were fairly well warned up to the situation
and ready to answer the more personal questions in Parts II or III.

By supplying the father with a clipboard and a cOpy of Part II Of the

questionnaire, he was able to answer, without embarrassment, the ques-
tions which related to his son's activity in the business. Similarly,
the son with another clipboard could answer the questions in Part III

pertaining to his relationships with his father in the farm business.

This procedure appeared to put both father and son at ease.

In situationS'where no definite arrangement appeared to exist,
questions were asked to discover any unique features Of’the arrange-
ment and why a more satisfactory arrangement was not being used. It
was discovered that in some instances where an operating agreement
was believed to exist, the son was only working for wages or an in-
definite allowance. Information about such cases is included at vari-
ous points in this report along with information from the 52 farms on

which more complete information is available.

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-f“I-.-; u . "' "Ir“:'§ I’Sv-O '. r“; ..a I_‘ - 41-.I)74.I1I” ng‘l‘gvr I‘t J-.." :1
_ ' , .. .7 . 1.. . _ . ,_ ... -_ \. , _'t.‘_ _ _ ..IJ _ .' .., ,.;_. ., .)
L \J V
”.._—.-c-o—u-«n V- .0 onvo-w —.—-. .0 r. I
.._ ~- I ‘ . l " O \ - - I \ »_ a. ,- - a... :_ -. o ‘-
I= III. e1 , ’1 row .I ”r”? .II I. I-‘I . «I, “we? .,::‘veut I-.:I».I'..~- :I;II.1.LII.I..o-IIS
I‘ “3“ ) f. ‘L‘ V‘ I "4 A 5- *3 Ar II" ““ 3 .—. v II .a- «r -..‘,'. . . "'7 - -' ~ -. " .
I' l ’ 9. 31 ,Qei H ". - Init- IJ. "I1 2 .10']; II"?! ‘3 L01 If..'_l‘ LO','-?I_-..I..' o if? +I'II"
I; k,
war")? 0" .' . 1, -_ t1 . " H -,. ‘1' .1‘Q .q‘.. Ly.- .\~- "3 >-.. L“ {1 ‘1‘ ‘1‘ ..x- ‘A‘
I....-.I:..,~, £1 a I-1-».II-. 1:! .;.‘.II 9 M31 I-ITI -. CIII;.H-_I- - LIITI a)? .71 ’1'3. . ., ; 3
a L) ‘ "‘ ‘

. .— . . ~ ‘ n D I ~§ ' -~ ‘ 2 . ' - .» n. . ‘ f‘ .' . .a ... ._ 3
was 0. .1} (191.? e em‘ r1 CI- 9. .._ a ennui ant. sou-I. “l-lan , 91‘941‘71". a he)" and gran:-
~ A .. ‘ ‘- . , a 4—: A, .. .. 3- ‘- 7"” “ -‘- ‘, . ‘- ,‘ - .\ ‘, ‘
f.()’l, BLIIQ a M) 1.1.01” EJII' 301'} 0:391I‘JLIJJI t0“ QuIIE‘l‘ o 119 lat-HIT and SUI; ‘PJI

L.) V ‘ ' ”

been vmrlrimg toge'fither under a (II I. .‘te arrest. e~t1::1t fir an avers. 'e
period 0: six years with a runs of
‘I‘l‘Iere W35 an ”WV-“we of 3.5 0:31 Liven in the father's family:

1

two of (LL-10.". 'JO'I‘B sous. IIJI‘II -;I£_ ‘or'IezIt of the farms, the so"; was a;
0:111! son and. In 13 percent of the cases this only son was the only
child. racers averaged 53 years and. sons 21 I..':ars 0:. age w 191:1 t‘rwy

hegan a definite business arrangewent. The youngest father Wag mg

and the oldest father 75 when the operatinr av-‘reotxent tog-en-

a .. L1 In hr!
r wheres" (‘I’I'l ea ‘9." at L4 «1 a the 01 "Inst 9 t. m. years of‘ a ‘9.
I. b g ' ' u ‘ .._,
z ‘ I . a 31* ‘ A . ' ‘o -n - - I ‘ r ' N
at the he ‘I .inI II:-- I». 1.3-8 near-It I_ r. a- roament s, 9/ “era-.0314. oi
- 5‘ 4- v A.
‘z' 11. q - a. v -‘, . w I \' ' \ r r. L‘ "— FM- - -
r :e In: :aI--rs II ore I.I.I_I,I‘1‘I ed and six iIerarent were l'Il I.II.II~.II1. IIII I“ "-0.73
c- . .i. II. .n , ......*-- I, "I .,: I?" '.- 4.1.. o... ._
iI',-:l‘;3‘3;l . Of I319. SI“) 3 WGI'O .._, LU. Vital URI. 01‘6" £13 I. L Hr.) S’dflfeix. iii ttfr I. H“?-
-L
. _ . 1.: . u w: - .. - 1- . . I V:- v . r J“ . -' I ' ' ’1‘. ..
I) w; 9...; fig. 91 T‘I-II; 7:911". ate-41:1 . ..LJ IQIIi‘, One-I, 1. rd 0:. I: rm sons were .3- due.
A U V a) ‘-\_.e
f ’I

, ,- . , .. “x ., e. . .' . I-‘. ..' L ._ , .
we rnrrIaIIe 0:. sons who Irma: mauled ....ftI,r the operatm. agree" Lent

\N
l
1
I)
D
"'3
CI)
co

5"?
('f
r .1
'1

old-1;: cflgl‘gl F2]: 3; “1‘90-

began took place on an average of 3..

3.1:}th was put into at“. fit.

I ' -— -‘ - ' ' L‘ . .2: ,. . . . . .I . L. ' n
.he hummer of sons Irfllurl LItxl 3n .,:Ie OIILWII...II_I~U i‘d‘".f"."_a “In II’S
.. s q .r ' (1‘ _ .. . ‘ . . ' .‘ . '1
.I' I wad of 7"1“ Pages was one; IT). .{i _Ierc art, 173er sees; and In on»
‘ v
" ‘ . .. I “I- , q 22‘... 7‘12- ,. .' -_ :n ,_ Hp . - ”H .
a gel-c II: oi the i Insulazeza, Mu. ee sons. .Lne I.-.r4.ter‘ an -.IIIIIHIeI
1'7» i—‘r', “’1': i.:)' .j L17 " I‘fi fi'! r) I O‘Jr“ ‘1'.\v"!’fi: '25)“? .L'r‘\1~;::LlliJ‘ \(\ I‘I f ‘3}. 4J5 1‘ I ( . 1. II ,‘ L“! l‘

in a ve y satis fasten; arrangement.

Of'the 67 sons included in this study, 32 percent were only
sons, 24 percent were oldest sons, 30 percent were youngest sons,
and only 14 percellt were between the oldest and the yoqnswe t son. A
range in age of ten years between fathers Operating with the oldest
son, or only son, and those operating with the youngest son was quite
significant. This is shown in Table 1.

Table 1. Average Age of Father and Son at the Beginning of the Farm
I‘\)rvgar9,t‘I Inc' Agree 31161113

“CO-“Had: “‘1..- .-n.‘
-‘M‘-:--“--fi-nor-“ ‘—

Age at the beginning of the

 

 

W‘Ima-m“'—-vm A
m-w -

 

 

 

 

Son incggded 1n the iarm Operating agreement
onera: n avreeuen "***‘*‘ “““““‘*"‘“' ‘*“
‘ g 0 Father Son

 

 

“..-

 

fl‘- .

 

 

One son in agreement

oldest son 49.1 21.8
only son 49.6 20.6
youngest son 59.0 20.9
Average all sons 52.5 20.7

_..n-:—-«-—.—-‘

 

 

‘A—‘ “H- -‘uno
.. - ‘-.-.-‘ o. ---M- can. --‘n. ‘ ---—“.-.----a ”m a——._o_-H

Inc udes only ca: es wnere one son was in tile farm business Opera-
ting agreement with the father.

The type of farming followed by the farmers in this study was
mostly of a general type. There were some dairy cattle on 98 percent
of the farms. Poultry and swine also played a fairly important role
on these farms,'while beef cattle and sheep were of minor importance.
On one farm, fruit was a major enterprise.

The prevalence of dairy on these farm5'was due to a combination
of several factors: 1) the sons seemed to take real interest 1n.the
dairy herd; 2) labor was available to take care of dairy cattle; and
3) the dairy enterprise was comparatively profitable and afforded a
regular income for the farm families. A division of the milk choc R

was the swat common method of providing the families with cash for

current living expenses.

13
All fazhers in this study owned at least 40 or more acres of
land. Thirty-one percent of the sons owned an average of 95 acres
each. Fathers supplied 74 percent of the land and the sons 26 per-
cent. Of all the land Operated by fathers and sons, 78 percent was
owned land and 22 percent rented.

Table 2. Percent of Fathers and Sons Supplying Owned and Rented Land
and the Acres Contriouted by those Supplying_ Land

 

 

  

 

 

 

 

 

 

 

 

 

mamm‘M-t“1_z.z:zast=:-r‘H‘flxzxrrr-t -- -*-‘ ~“-':~-*—‘*-2=z
Owned land Rented land
-u-qP-Onb - --0 -O—-o—------—<r—- “—wve—o‘ --_ ¢ -s «rm-o w
Land supplied Percent Avera re Percent Average
by supply- acres supply- acres
. ing supplied ing upplied
“.._..+ - Juno-.9
«ether 5 100 g 177 48 58
3 5
Son 31 § 95 54 46
.._—- -'.3==‘::’2_23332m_333.1.1 =2:.:+m=:-n.:-:'::.”.;Jiz :2 2-3-31: .1: .: 3 3"33 “.3: 33. Z: 3?. -3.-

 

 

Table 3. Average Acreage and Percent of Land Supplied by Father and
Son on 52 Farms in South C ntralh {ichigan

“J“‘“J_o -‘-M-v*-—D —.~.—.-.-o -—-—“‘.—.-.—‘.-‘- m.--—.—M‘--.b 0v A‘A-—‘J..-D'

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

:d Asapplié'fmw 73335 ‘EHF‘ “ ':_ text‘s; 1333 ’“"«'T‘J€ 51‘3“}. :_._.
by Acres Percent Acres Percent Acres Percent
Father 177 82 28 47 m” 205 74
Son 38 18 32 53 7O 26
Total farm 215 100 60 100 275 100
$2.33.:sz 31:.m—33““3133“.=:3=;3‘=:L3~3 mzffi.‘-me -.... ..—- .._. .. .- ~ -.33 3:": = 2...”...

 

Ninety-five percent of the original holdings of these 52 farms
had been in the family over 20 years. Four farms had been in the
family over 100 years. In those cases where the farm.had been in the
family for many years, there was considerable interest, especially on
the part of the father, to have the son continue on the farm.

Interest in Farmdng: An interest in farm work and farm liv-

 

ing, not only be both the f .ther and the son, but also by their wives,
is a very important factor in the success of any farm business agree-
ment. It takes real enthusiasm for a job to become highly success-

ful. Several fathers and mothers told of trying to interest their

1%
son in some other type of work. The son was very definite in his
decision to farm and would consider nothing else. If any member of
either family lacks interest, the load for other members of the fami-
ly will be heavier, and discord is likely to result. A son who farms
because his parents want him to farm, or one who farms because there
are no better Opportunities Open at present, will be less likely to
do a satisfactory job of keeping up his end of the lead. A father
who wants his son in the business in order that he may devote time
to other interest, or one who has ceased to be interested in future
progress, will not be able to keep up with the business activity of
the farm and may even retard progress of the farm Operations.

there a father Spends little time on the farm, his knowledge
Of farm activities becomes limited, and his ability to use good judg-
ment on problems is greatly impaired. This becomes a very disturbing
factor to many sons. Sons express a strong feeling that fathers in
partnership with their sons should be on the job so that they will
know what is going on, afii be in a position to discuss problems and
make decisions based on on-the-scene observations. Some fathers ap-
parently try to help boss the job without knowledge of immediate Op-
erating problems.

A son's wife can do much to develop a knowledge and apprecia-
tion of farm business Operations. Such experience will enable her to
use sound judgment in helping make decisions affecting the family,
and in Offering encouragement to her husband as he goes about daily
farm operations. She should have a knowledge of the working agree-
ment, especially of the contributions by her husband and his father,
and also the basis for dividing income.

The mother's role is an important one where father and son

15
farm together. In many instances, a mother is able to see the son's
point of View better than a father. She may be able to discuss a
son's problem with her husband better than the son himself. She is
generally more patient with a son than his father. Her attitude
toward her daughter-in-law will influence, to a great extent, the
success of a father and son farm business agreement.

In the study of father and son farm business arrangements in
south central Michigan, 80 percent Of the sons indicated that they
liked farming better than any other occupation. The other 20 percent
indicated that they liked farming as well as any other occupation. Of
the sons' wives, 71 percent were farm girls and 29 percent non-farm.
In 73 percent of the cases, the sons indicated that their wives were
very interested in the farm business. Twenty-seven percent were mod-
erately interested, and none indicated a lack of interest. The wives
that were reared off the farm showed a slightly greater interest in
the firm than the wives who came from farms.

Some fathers seemed to be interested in getting their sons to
take over so they could be relieved of the work and responsibility.
Quite a number appeared to be working along on a fairly equal basis.
A few fathers appeared to dominate the situation. Some fathers seem-
ed more concerned then their sons about the future well-being of the
farms and were very interested in keeping the farm in the family.

Separate Housing for Each Family: Farm families seemed to be

 

very much aware of the desirability of having separate housing for
each family. In 95 percent Of the cases where the son was married,
separate housing was provided for his family. The other 5 percent
consisted of widowed fathers living with the son and his family.

In 29 percent Of the cases where the son was single, a second

16
house was available at present. In all other instances, it was in-
dicated that a second residence would be available when the son de-
cided to marr'. In some cases, a second house would be built on the
farm. Others were looking forward to purchasing an adjoining farm
with a set of buildings.

Only one son did not live on the farm. No housing was avail-
able on or near the farm. he reported the arrangement very unsatis-
factory. All fathers lived on the farm. The only mother working
with her son lived in an adjoining vilLage, but Spent some time at
the farm.nearly every day. This appeared t0'work out quite satis-
factorily as the mother did no labor on the farm.

Houses of both the fathers and sons were modern. All homes had
electricity. Piped running water had been provided in 96 percent of
the fathers' homes and 93 percent of the sons' homes. Flush toilets
had been installed in 90 percent of the fathers' homes and in 85 per-
cent of the sons' homes.

Frequently, the second house on the farmnwas older or smaller
than the fxthers' home. However, a few sons had newer and more mod-
ern homes than those of'their fathers. In general, the daughters-in-
law had almost as modern hoses as the mothers who had been keeping
house fbr years.

Ability to Work Together; The ability to get along well and

 

work tOgether was mentioned first and most frequently by fathers and
sons as a factor which contributed most to the success of the farm
business operating agreement. On the farms studied, 52 percent of
the fathers and 59 percent of the sons indicated that they generally
agreed. Fathers reported that they differed occasionally in 46 per-

cent of the cases, while 39 percent of the sons felt that they dif-

l7
fered occasionally. Frequent disagreement was reported by only two
percent of fathers and sons. It was significant that on 62 percent
of the farms fathers and sons, using separate questionnaires, gave
identical answers to a question concerning the ability to agree.

An attempt'was made to discover'whether or not fathers and
sons agreed upon the kind and amount of machinery and equipment need-
ed in the farm Operations. Eighty-two percent of the fathers and 72
percent of the sons reported that they generally agreed on the ques-
tion of machinery and equipment. However, they were less consistent
in their answer to the machinery and equipment question than they
were on general ability to get along. Fathers and sons gave similar
answers to this question on only 56 percent of the farms.

The ability of a father and son to talk over things together
and consider each other's point of view was frequently mentioned as
being important in.developing good working relationships between a
father and son. Eighty-eight percent of the fathers reported it was
very easy, and none reported it was difficult to talk things over
'with their sons. While 87 percent of the sons reported it was very
easy to talk things over with their father, three percent of the
sons found it very difficult.

It is the writer's experience that in many cases sons find it
difficult to talk things over with their fathers, and in some in-
stances fathers with their sons. Little differences of Opinion are
kept pent-up inside the individual until they accumulate, and then
break out suddenly in a fit of temper. This inability to talk things
over may be the result of failure to appreciate the vieWpoint of each
other. One father suggested that he couldn't tell what the son was

thinking about if the boy didn't talk. On the other hand, this father

1?.
apparently didn't try too hard to discover what a young man his son's
age might be thinking about. The father may have helped develop in
his son a fear of being criticized or "kidded" about matterS‘which the
sen asked about or suggestions he made.

Applying the Golden Rule and putting y0crself in the other
fellow's place were mentioned frequently as important in father and
son working relationships. An understanding son put it this way:

"A fellow has to reseuner that it took his father a long time to get
where he is today". Often sons fail to recognize this and are too
impatient. On the other hand, fathers often {hi1 to realize that
their sons have grown up and want to be treated as men.

The father and son and their families must have mutual confi-
dence in each other. They must have faith that the others will al-
ways give them.fu11 consideration in anything that is done. If at
any time that faith in each other is strained or broken, it may be
the beginning of serious trouble.

Tears rolled down the checks of one father as he told of the
wonderful working relationship he had with his sons. His sons did
not hear their father rake these statements, but on another occasion
one of the sons told how his father had helped the boys get start-
ed and renmrked, "Dad doesn't have anything to worry about. We‘ll
never let him down."

A son in partnership with his father and two brothers re-
marked, "You learn to give and take. Sometimes things are done the
way I think they should be done, and other times I do them the way
my father or brothers want them done". From the cases studied, it
appears that two or more sons working with their father get along

as well or better than where only one son is involved. Where two

19
agree, the third party must abide by the decision except in cases
where it's the father voting against the boys, and then apparently
in some instances, the father's vote bears a little more weight. In
a case of father with three sons, the father reported that he was
frequently out-voted, and yet this was apparently one of the very
successful father and son Operating arrangements studied.

A Belief That working Together is Desirable: Thevrriter re—

'm-o—M OP~MM~-7-‘~-“H- ~~- . “We“‘flflmm

 

calls a visit to a farm a few years ago where a can about 18 years
of age was at home on the farm without any definite operating agree-
ment. Father and son were working in different parts of the field
.so it was possible to talk with each one individually. The son ex-
pressed a real desire to farm with his father, but wasn't sure wheth-
er or not his father wanted him as a partner. A talk with the father
revealed that he had always hoped that his son would want to farm,
but felt he shouldn't try to influence him one way or another. A
few ndnutes later at the barn with both father and son present, the
possibility of a father and son farm Operating agreement was discuss-
ed. The farm appeared to be large enough, and other conditions were
ideal for a father and son operating arrangement. The son reported
that the matter was discussed fUrther with the mother around the sup-
per table. The entire family favored the idea, and a very successful
father and son operating arrangement resulted.

Unless both the father and son and their families believe that
a farm business Operating arrangement is to their advantage, dissatis—
faction is sure to arise. In the more successtI father and son farm
business arrangements studied in souflicentral Michigan, both fathers
and sons recognized the fact that they were mutually benefitted by

working together. Seventy-one percent of the fathers and 67 percent

of the sons indicated that they felt they were dcing better farming
together than they would be able to do farming individually. Twenty-
nine percent of'the fathers and 31 percent of the sons felt they were
doing as well working together as they could by operating individually.
None of the fathers and only two percent of the sons expressed a feel-
ing that they could do better Operating individually than by working
together.

Figure 1. Percent of Fathers and Sons Who Believe They Are Doing As

Well or Better in Partnership or That They Could Do Better
Operating Their Farms Individually

- . —-- -

XXIX}! IXXL‘DCXIXXXIWHXX XXXIXIWXXIX XXX 7 l ‘}

 

 

 

 

 

-A‘.‘

e‘\

Doing better

Eh

**********#***************************$* 67

 

xxxxxxxxxxxxxxxxxx 2975

Doing as well
**$***************** 31,%

xmeMflmr

 

Could do better None
Operating
ind ividually **

**#* Son

PO
3

 

_ w
—- ..-

It was interesting to notice that fathers were inclined to
think their sons were doing much better than the sons themselves
thought they were doing. The sons also were inclined to think that
the fatherS'were getting a better deal than the fathers themselves
thought they were getting.

Seventy-seven percent of the fathers felt that having a young-
er man in the business helped greatly in keeping then stimulated and
looking into the future. Twenty-one percent felt that it helped to
some extent to have a son to work with,'while only one father felt
that his son contributed nothing toward keeping him.young and look-
ing into the future. Ninety-eight percent of the sons felt that it

was an advantage to be able to work with their father, and only one

(I

. .
v\, ',

r: I" hated
hsr‘ ..“-‘ .

In order to fwrtn r t"23-53% Eve sens' belief tan? a fart 0““Pfi—
A.

_ _.
L z

‘ , — .. - « .‘- -~ \I. v ‘
tlnz‘ 31‘ T'Fm‘ “'1‘, was (39.3.3?! ,
V U

9 'the) guru: v~> a :.31731 fix’s rPYGSifi on' "3
gen were your father's age, and hei a sun your eye, mould you want his
+3 F0 into ner~nershin with you?" ninetv-seVHn werceat answered was

-- - L 0. u e u '
to this questi an and three perceqt were no,

’ I

here rmre whey reasons VlV»n for the establishment of a fa-

‘ u
l
‘-

gig

ther and son farm ognratin; agreenelt: 1) Fathers c0115 nn‘ do the

work alone, 2) hired help could not he depended upen, a) fatherS‘wwrt—
ed to help the son get started, and 4) the father wanted to keep the
fern in the fauily. A few mentioned that many fa t jobs require two
men and that two men can do more than twice as much work as one man.
The reasons given by sona fer entering into a fern business
opera Elf-1g: &_;I“?e'4"19n_t Lnnluded: "It was easier to start 8.". 230793"; "le‘:-,:.‘iifirzel‘
was {Ulisble to do the work"; "I liked farming and there was no. better

alace to start”, and ”Dad wanted an to work with hir". A few sons

'...

pointed out the advantage of large scale operations, and the use o?
more mid larger equipment.
One son said he was working‘with his father to keep him inter-

\ -:— -' ,u ‘1. . . ‘ ~ ~ 1 ‘ x — .3. ‘ ‘1"- . ‘ '- AV a .‘ "‘~ W V I
03 ‘,ed . hill-"1‘ (111:1 y 1.1m frat neI‘ um i 0:, c om, (1140:.» t C 0431 a he 1;! (11m to

ill health and the son was actually nel

N1

)ing tne fa her get on his
feet again, otherwise the father would have lost all hope.

One father summed up the benefits of such an aQreemnrt by say-
iig, "It keeps me from.'drylng up' and ny son from llowlnfi up . Lhet
the father probably meant was that the son, with his youthxul jdea:
helped keep.hjn np-to-date and the fern operatia'

‘ I

On the other hand, the adventuresone nan

l | ‘ ' ' L.
.ure of ‘.'v311':,r1 mare-'31; :24? r: was? --
U

ing influence of the father's years of exjerionce. when tested to-
gether and‘workin: smoothly, these two forces have trerendous poten-
tialities. ”hen allowed to get out of control, the; may create a
great deal of friction.

There seems to be little doubt that a father and son Operating
agreement, when preperly set up, give both father and son advantages.
In many instances, fathensand sons fail to appreciate fully the bene-
fits that are being, or which may be, derivei from working together.
Fathers need to realize this early, and prepare their sons for the
responsibilities which are connected with full scale operation of the
farm.

.519:”.19§i.5.e. .o'f. flamers-5913;231:113 .5311: If a farm youth is t 0
'work with his father in a farm business, he should have a very comp
plate knowledge of the business sepects aS'well as the technical side
of farming.

He should know how much is invested in the farm.business, the
nature and amount of farm income and expenses, and the financial con-
d‘tion of the farm business. Experience with farm.youth in voca-
tional agriculture and college short course classes indicates a gross
lack of kn sledge of the business aspect of farming. In Law in-
stances, this lack of knowledge b; the son is not entirely his fault.
Fathers are too much inclined to keep business affairs to themselves.
If the son is to feel that he is a part of the farm operating team,
he must have knowledge of the business and receive his full share of
recognition in problems of mazmgezent.

In 90 percent of the successful father and son farm business
arrangements studied, fathers reported that their sons contriluted

greatly in planning and making decisions in the farm Operations. In

4%
‘;Q}

1C

w

yeroeut of the cases, fathers reborted that they had difficult;

1n getting their sons to assume resyonuibility. No cases were repert~
ed where fathers felt that the boys wanted to make too many of the
decisions.

Two-thirds of the fathers felt that their sons could manage
the farm very well alone, while one~third felt that their sons would
need some advice from them in carrying on the farm Operations. 0n
65 p roent of the farms, fathers rated their sons' ability to manage
the farm the same as the sons rated their own ability. Fathers, on
29 percent of the farms, rated their sons higher than the sons rated
themselves. In only one instance, a son rated his ability over the
rating given him by his father. The sons who were considered by
their fathers as being able to take over the farm operations, aver-
aged about three years older than those sons the fathers felt would
still need some advice and help in onerating the farm.

Both fathers and sons rated 4-H Club, Future Farmers of America,
and Michigan State College Short Course training high as factors con-
tributing to the success of their father and son farm.business arrange~
meets. Over 80 percent of the sons had 4-H Club experience. Seventy-
four percent had been in the Future Farmers of America. Forty-eight
percent had completed some Short Course work at Michigan State College.
Thirty percent of'the sons had been in 4-H Club, F.F.A., and M.S.C.
Short Course. Many of the sons mentioned the fact that it was through
their 4-H Club and F.F.A. projects that they became interested in farm-
ing, and began to work with their fathers.

With these agencies playing such an important role in the pre-
paration of farm;youth for'the responsibilities of farming, it would

seem that every effert should be made to include in their respective

programs things that'will do 31 even better job of preparing sons to
enter farming operations with their Tanners. This might well include
more stress on the basiness spects of farming, and building up an
equity which will give the son a good start when it is desirable to
begin a father and son farm business operating agreerent.
fELHEBT§§EEE_§i e EflfifliiTiii‘ The importance of having the
farm business large enough to provide income for both father and son
and their families cannot be emphasized too strongly. where money
is short, problems are more likely to arise, both within the family
and between families. Where the son ferns with his father, the son
'will usually receive more under a farm Operating agreement than he
did before the agreement basal. This means that if the income re-

mains the same, the father nay receive less than he did before the

p.

Operat ng agreewent began. However, when the size of business is
expanded and the total income increased, the father's share in many
cases is greater than when he was Operating individually.

Many sons get married at about the time they enter the farm
Operating agreement or within a very few years thereafter. Their in—
come requirements are usually increased at that time and continue
fairly high for a number of years, especially where there are chil-
dren. An additional expense is likely to occur where a home for the
son and his Wife has to be purchased, built, or remodeled.

Sore expansion of the fnrm business is usually necessary.
This is freQuentLy done by intensiflying operations or by renting or
purchasing additional land. Dairy and poultry enterprises are fre-
quently expanded, and other enterprises may become more Specialized.

The importance of doing enough business to provide an ade-

quate income for the father and the son and their families was men—

ex

ti on ed as a fa:i:cr COWfrljhtlfi’ tc the success of farm business 0;-
erating arrangements almost as often as the ability te get along well.
In man; instances, it was necessary to increase the size of business
at the time the father and son Operating agreement was set up. This
was done in several ways: 1) 54 percent added land, 2) 42 percent
added livestock, 3) 23 percent added both land and livestock, and 4)
in 8 percent of the cases, the son replaced a hired hand.

On 82 percent of the farms, the father and son felt that their
present business was large enough to support two families. Twelve
percent would like to see it a little larger, and 6 percent felt that
their business was definitely too small. Acreage operated and number
of men on farms in this study as compared with those of farm account-
ing farms in Area 5 for 1948-1949 are shown in Table 4.

Table 4. Acres Operated Per Man on Farms with One, Two, and Three
Sons as Compared with Farms in Tgpe of Farming, Area 5,1949-49

All farms Tvme of
Number of sons rartic'cqtl "
in the

 

 

 

Item .......... ..--.—-- 11.. farming
1 2 3 study Area 5

Number of farms 40 10 2 52 328
Man equivalent 2.1 3.2 4.0 2.4 1.7
Total acres:

Per farm 251 341 420 2?5 220

Per nan 120 10? 105 114 129
Tillable acres:

Per farm 199 283 365 220 166

Per man 95 88 96 93 98

 

 

3...“ A‘ -. —— fl -- -."~-.¢. nM-““—
A 7—. 1 ..:“.-. --lefi—

 

It is evident that in.the general farming area included in
this study, as each additional sen enters the farm business, the av-
erage size of the farm is increased b; a 1i ttle over 130 total aczes .

The two farms included in the group with three sons were both in a
part f the area having a high percent of its land tillable. There

was ccnsiderasle difference in the two farms represented. One dairy

I"

farm had about IQ tillable acres yer nan, and the other wish were
cash croy had over 120 tillthe acres fer man.

In a ccryerisen of the 52 farms with farm accounting ferns in
Area 5, the farms in this study were larger, and had more sen yer
farm. This resulted in the Area 5 farms aving slifhtly hifiher acre-
afes per man. The farms in this study had 4.6 more cows, 2.4 more
sows, and 81 more hens per farm than farms in Area 5.

In an effort to determine whether or not the financial returns

from the farms in this sturv were adequate to meet the needs and de—

J)

sire. of those in the Operating agreement, fathers and sons were
asked, "How much are you able to save from your farm earnings fer
invessment and future needs?" A satisfactony amount was indicated

by 57 1er3ent of the fathers and 72 percent of the sons. Thirty-

P74

five percent of the fathers and 28 percent of the sons indicate? that
they were able to save some, while 8 percent of the fathers found it

~

D

:9

difficult to save anythitg. None of the sons reported that it'w
difficult for them to save. The fathers who reported that it was dif-
ficult to save were older men, and none of them enjq;ed good health.
working conditions on these farms were below average, and quite like-
ly incomes were inadequate.

One of the reasons given by both fathers and sons for operas
ting together'was that Larger scale operations were possible, and the
ownership of Larger pieces of equipment were more justifiable. All
farms in the study used tractor power and averaged two tractors yer
farm. Some idea of the degree of mechanization on thee farms is
shown in Table 5.

Although farms in this study were fairly well mechanized, there

'I

was censideracle variation in the degree of mechanization free term

to farm. In a fen cases, it is doubtful if the managerial ability of
the fat ler and son warr ntoi expai u:ion of the uni. to a poi(t woe.re
large equigrnnt would be profitaole. To some of these €athors, a 120

acre farm seemed a Large unit.

 

 

 

Table 5. Percent of Far's Using Various Xachines in Their
rn(hwritiiis_w- _H‘_‘r~_--u_:.'fi‘~._‘
Machine Per wit using «a 3hine
Tra"t0r o o o o o o o o o o o o o o o o o o o 100
Eilklng machine 0 o o o o o o o o o o o o o o 83
COHbine o o o o o o o o o o o o o o o o o o o 77
TYUCk 0r piCka o o o o o o o o o o o o o o O 71
30m picker 0 o o o o o o o o o o o o o o o o 54
Elevator 0? grain EIUWBFQ o o o o o o o o o o 54
Forage hflrVBS'tel‘o o o o o o o o o o o o o o o 37
Pickup 128.151.. 0 o o o o o o~o~ o o o o o o o o 15
Cutter cleaners . . . . . . . . . . . . . . . 4
Lugar beet harvester. o o o o o O o o o o o o 4
u-LiA _-. v. - era—2.412.: 13344—2313.:33 1:55.13. gem-3:331 nan-Mew r-ztrrtrzzzzmmz'M43m-s

«ood Farm vanavO'ent Annlied: Good farm management was evi-

“ -.—m¢- m-C C...“

 

dezit on most of the fr'1s included in this study. In addition to
haVing betw on 90 and 100 tillahle acres per man, these farms were
well stocked with high-producing lives took and obtaining above
average croo yields. L.H.I.A. records were keot on 54 percent of the
farms, and the herds reporting averaged 368 pounds of butterfat per
cow. Although production records on poultry and hogs were not gener-
ally available, these enterprises were considerably above average in
size and apfeared to be receiving the attention normally devoted to
a major enterprise, rather than the lack of attention which is so of-
ten a characteristic of .minor enterprises.

Fanns in this study applied an average of 12 tons of commer-
cial fertilizer annually. This amounted to 108 pounds per tillable
acre. An aver are of 20 acres of lerumes were seeded annually as com-

pared with 19.5 acres on Area 5 farm n.. Thirty-one percent of h

3)
"f

v

tillaole land was in hay and pasture compared to 38 percent on the
Area 5 farms. Crop yields per acre reported on these farms‘werc at
least equal to or slightly higher than for the average of Area 5
farms.

Buildings on 62 percent of the farms were reported in good
condition, and 38 percent in fair condition. An attempt was made to
determine how efficiently buildings on these farms were being used.
Sixty-two percent reported that buildings were adequate to meet the
needs for housing livestocL and storing supplies and equipnent. Con-
ditions were reported as crowded in 17 percent of the cases, and as
not being used to capacity on 21 percent of the farms studied.

Farm records were kept on 96 percent of the farms. Although
4 percent reported keeping no formal records, it is quite certain from
answers given to other questions that these men did keep some type of
record. Records were kept by the fathers in 28 percent of the cases
and by the sons in 38 percent of the cases. Father and son coopera-
ted in keeping the records on 28 percent of the farms. The mother
or the son's wife acted as bookkeeper in 6 percent of the cases. In
one instance, the daughter-in-law had previous business experience.
13 keeping he farm records, she became ver; interested in Seeing the
farm succeed financially. This appeared to be a good way to get the
son's wife interested in the fa 3 Operating arrangement. The writer
is acquainted with several cases where the son's wife was not kept

inferned of business transactions, and as a result believed that the
father was getting nmre than his share of the farm income. keeping
the son'S'wife informed and satisfied with the farm business operating

agreement appears to he a matter which should not be overlooked.

Fons were asked how well they were satisfied with the type of

r
p!)

-‘ u o . «A I w '1‘ I A. N v 7 -
:a.m:na new hesng foiiuwe: a:

what ahanfes they would recemmend.
Eightg-nine Percent Of the 5548 were satisfied, 11 rereeut not an-
tirely satisfied, and none dissatisfied‘with_the type of farming be»
ing follo:ed at present. fieveral sons wanted to increase the size
of theciajry enterprise, others wanted to increase both crepland and
livestock or make a few minor changes. Generally, the suggestions
offered b= the sons appeared to be good ones based on sound think-

. Onl; one son wanted to change from dair3 to beef cattle and

sheep. This did not a;pear to we a very desirable change on his

No definite attempt‘was xade to measure labor efficiehcy on
the farms studied. Heweyer, on most of these farms it would appear
to be very good, due to the larger than average acreage and heavy
livestock load carried. Sons on these farms were young and able to
do a lot of hard work. Fathers tended to do the jobs requiring less
physical strength. In this w Y. the capabilities of‘each man were
utilized to the greatest possible extent. A_young man's physical
strength need not se wasted doing suttery, tine-consuming jobs when

father is there to helg.

Farms included in this study apyeared to be sound financially.
Sixty-four percent or the fathers reported no debt at the time the
farm Operating agreement began. Only 20 perceét rejorted more than
$1000 indebtedness.

Tne son pointed out the infortance of having cash on hand to

‘l

t 1‘e advantage of a good buy or to mane a needed purchase. Rith his

father's backing, axch deals were rcs<ihle and a good investment re—
311 lted o

Tarticipaticn in the ”ntire Farm ?nsiness: An arranwouent

.._“ .4-

permitting The son to share in tne entire farm buSIness has several
(1) It gives the son an interest in every enterprise on the
fezw u, and helps him to develop an aperec oint 01 01 the farm
business as a whole
(2) It may give the son a more uniform income frem year to
year than 3 Mi gle ent erpr rise
(3) It greatly sirp lifie sthe problem of dividin items of
income and expense, especially if the son has an interest
in several enterprises
There appears to be quite a common practice, especially in
some communities, to have the son share in the income of an enter-
prise or part of an ent Herfrise. In some cases, this may be the re-
sult of expanding a 4-H 31nd or F.F.A. prefect. Powever, the pree-
tine had apfereitly been used for many years before these yroups were
16 eloned to their prese mat $0009. The enter pri i:s§;shered by the son

are neielly of a type which is fairly easy to get into, ferhens an

.erprie 06 in which the fa ’ 1er is not too interested and'wents to

”I.
.

en
turn over to the son, or those in which the son has snwwn a ferticu-

ler interest.

‘

In the {R ean—proiucile area of the state, it is quite common

L
fer a father to rive his son the income from ten acres of beans for

V

nie share of the farm income. The father Eu mlishes the land, seed,
fertilizer, and equipment, and commonly helps take care of the crop.
The son doesn't really gain meal eusiaees ex;:)em'ie103 from tie ven-
ture. when questioned about the arrangement, one sen admitted that
he was naturally more interested in the field from which he was to

‘

receive his income than any other field of means or any other grey

‘ "-..—. r . .s.1 '.. 7'... :\ ° . ‘ .
o". to». gloss. :“U with more ':u:‘-:7‘....L 1: cultintzx', hneinr‘, P «l -:a:‘-

vet-aim: this field than an ' other. Such an art'srxge‘isii; hm; have some

1
~.

merit in the prepirtnership feriod. However, the son has little re-

sonsibility or opportunity to gain business experleice from it.
ghee the son receives a share of'tha income from the eitire
p

.arn hisifleas, he is interested in doing a good job with all enter-

..10

i V.
D.

338. For examgle, heivill be interested filestaLlishing a :ood
seeding of alfalfa so that he will have an abundance of good hay for
the dairy herd. HB'Will want to get'UstFVV put up in such a way
that he will have quality feed for the herd, because he is receiving

a shire of the income from the dairy herd as well as the beans or

‘Wheat grown on the farm.

(:4

1 a few cases in this study, father and son were still in the
transitional period between the enterprise arrangfixent and a full
partnership in the ousiness. In one instance, the father retained a
beef breedinp herd'which he had spent a lifetime developing and felt
he just couldn’t give it up. The son-in-law in the arm business op-
crating nrrmlgemant liked dair; cattle and was establishing a dairy
heri. It is quite likely that as the father grows older and is less

able to devstehis enorvv to the beef cattle enterprise, emphasis on

”‘01

‘

this farm will shift from sea? to dairy.

In another case, the son held a one-half interest in the dairy

“—4

and a one-thiri interest in all otier livestock. The son had devel—

oped Quite a dairy projec 1n 4-H Club work and was not as interested
in hogs and beef cattle. keeping track of exoenses and income under
this arrangement was difficult. Plans were to work out a program the

coming year in which the father and son would share eoually the in-

vestnent in personal progerty.

it should he keat in 1111 113% fluile the expeisiou of 4-H filed
agd 3.3.1. urojects iito eutergrise yroje.mt is desirable from the
ste1e .rizt of firing the son wortHW1ile exgerienee, and a chance to
build up a Hangs for partial finanoiig of a1 interest in the satire
:usiness, sonezflgnstments may .6 ABCSSSRYJ when an operatin arree-
menu is set ug. The son may h1.e to chanfe emghwsis on certain enter-
prises in order to give pro er attention to develorinf a well talanoed
farm business. It will he necessur; to establish values for the son’s
livestock uni equip1n1t as well as that of th e fatier, in Grier to de—
termine the extext of their contrioutioes.

”1ere tne son is to share in the p sonal propertd, it is well

to indizate the share which he eventually hopes to own (3.f., one-

? the son is to own a one-half interest in

#4

third, one-half, etc.‘.

‘\

the personal propertg, the value of livestoe 1: and equigment he has
acouired through 4-H Club or ?.F.A. preje ts ms; to applied as a Is;-
neat for his half of the eon ined value of all pers 01el prooert on
the farm, incl ding the son's animals emi equipment.

Anot her ed :stment that mg; Fe neeessarv is in the ownership
of individual animals. It is recommended that all animals be owned
jointly whe.e fa*:her and son are farming ,ogother. If purebred eni-

V

mals are owned hy either fa t} er or son, a decision must b made as to
how the re fii tration will be handled. Where an entire herd is in-
volved, the exPense of transfer might be qui te an item. Hawever, if
a pureb red herd is to be owned in the name of the father and son, it
might be well to make the traz1s f:r early and avoid having animsls in
the heri registered under two or three different ashes.

in one instance, a father'was carr ring qu its a debt lea-i and

felt he could not tel-re on additional 071215.311: ions involving; an expansive

xi. ‘~ ‘1‘ I 'V ‘ . .“ 1" 3'" ‘ — r ‘V. I ir' ‘ .- ou' T7: “~' "" ‘ r . 1
:J‘ 1. {Be .L(.33 ’4 h ..‘.O‘1 tilt) Ei\.'.:. Dyltt? {‘6‘}. t: .‘(3 {)‘AH';_: ‘6‘, ‘5“) Q I‘ {a C13 II fil‘.‘ ‘1'. .13 t‘)

or-tain a 10:1: 1.71471 74111211 to t_11r:‘z‘;:-1se enoufh dear" mime to thatch his
. __ u ‘ "'

(I)
b-‘J
p—t
G
*1
N1;
0

A
U!

father" " 1.. 9 each an arrangement, the father's holdings were
not further encumbered. Tfinder this arrangement, if anything hapyenel
to an animal 0?an eiti'aer 1.1;; the father or son, a replacement was

made and the expense shared equally by father and son.

F!_.T. :'o 1 . 1-21TL_: 31 ”T ETLS
A nun er of differa~t i; es of ogeratinr arrangezedts are to:
rss to meet tne varied situa“ions waere fati1€r and son Wish to
f.rm toyether. A: arraigenent wnic? mm; be e1tire 1;! safiischtor; for
a boy may not be sat1sf1c t or‘ for a young man who is read; to assume
the resgonsibilit; of operating a arm.

(1) furing

(2) During

/‘\
C»)
\J

the prepartnershi 9 period such simple arranceien

as the following are common:

1

(a) A 51'1119 4-2 " Cmb or E‘.?..1. project
(b) A Club PI'O‘0 05 ”m6 be Ipanded to in e11 de an entire

entergrise as the son matures

\J

1
(.1
kl)‘

la‘es and a

O

are of one or more enterfrises

P~

son ma; receive a percent of 1L1

Q;
\..J

The ome from the

rx

entire farm business

On-L

the partnership period when 1u21er and son are both

actively ooerating the farm together, some type of farm

business Oferating agreese 1t is no cessarg. A number of

such agreements ar e d1seussed in detail later in this re-

port 0
Latei, as the father wishes to take a less active part in.
the farm business or completely retire from it, some tgge

of rental agreement will probably be a more satisfactory

arrangement. If a property transler arrangement has not

already been made, it should be given serious considera-

tion at this point. This period is a critical one for the
son. If the father continues as a partier i. the opera-
tieg agreement, he is li‘weL to rezore over-c m1 ervati

a

.3: coutri:ution o“ labor and maeare eat mx' fleece} less
and less until he contriouses little or nothing. The fa-
ther me; feel that he needs nis farm for securif, in later
gears, and refuses to part with it under any teres. In a
case 'here the father is not willing to sell the farm, tJB
son may be wise to purchase other land. Tn some instcoces,
the sen mg; Le able to buy a nearby farm with a set of
buildings and live on it while he contirues to Cgerate his
fat, her ' s farm.

Pk.

‘-

. es of Farm Operating Afireemcnts: Althourh there are many

--.-. m

 

kinds of father and son farm business Operating agreements being rec-

cnrended b; agricultural lenders today, there is much similarity a-

mong them. lost of the: have as their purpose suggestions for a fair

 

division of income based on contributions nade by a father and son op-

 

 

 

erating a farm business to ether.

Types of operating arrcements suggested incluie:

(l)'na:es an. a share of‘the net farm incone. The son's share
of the net farm income me; he a set percent or it may be
based on the percent his contributions are of the total
contributions of both father and son as shown in Table 6.

Table 6. Exanple of a Nethod or Determining the Share of Income to
Father and Son Based on Tercent of‘Contrihution by Bach Party

 

 

 

 

 

 

 

 

 

 

 

 

 

'.'.".‘._. HPJZ. 2—2-81." ""_"“'" - ' " "" "'"_ “.._..- "“' -_- _._::I:';_::ZZ':;2;‘::'.:;;.::;:J:= :2- --_-.27-...m...”
Contr cations for gear
...... .1...,____
Item Amount Rate Total Father Son
Contributions
lend & inyrovements.....fRQ,OOO 43 $1,000 31,000 "°'
“Z‘peratim-f cap ital . . . . . . . 16,000. 5,1 9N3 600 .700
thrOOOOOOIOIOOOOOOOOJCD 21 YDC). 1300 2’4'n0 1,200 1,2""O
”M..- MDWOO #7 C't'... C-JD’.‘ ”-‘-
Total value of contributions......0........§é,200 32,800 $1,420
Percent contributed by each party.»........ 100 Sf 33

 

 

 

 

 

 

 

I’\

(‘0

\J

{1" 7'3: 1,0 (“m—tu‘Tz' 0‘: * u; " ‘1‘ {.1 7 “mt. P 305 C t m 1 ,:._."~
h" '8.5 ’11!" (I I'""'3 ' 9 as new“ . HQ [ E) 1.11 17]"? ,I‘ V" 1'-
ue 0‘" 11"e‘<trc cm ecu 1 7‘ Cmt until" 91.0 1 H .0 CC“...

siderofl either in the owl a1 settlement or in e ?inel

the axe r vn"ulfi 2-9 'tuarsn-
teed. in case the son's share 0 s not 6'“U“H to cover the
”eje,}m wm4hlrtfllte entfiflefi bathe fifll ammnfl of
wage. ’“‘s t7ve of erranrexcnt as; he usei in situations

_’.¢-.-.\_

where the son is ;ounv and has not fully decided that he

0

wants to Earn, or wxere be me; have ver; limited ayitel.
In a plan thich is widelb used in Michigan, the father and
son are each yaid for their contributions of real estate,

personal prayer.) and labor. Fern Ogexeting exgens es are

then deducted and the income remaining is divided befi can

t;

111-

fether and son, somewhat in preportion to the reef
ty each carries and the manayement he contributes
Although it is desirable to have contribzticns of per~

Renal prooerty and labor by father and son about equal,

L

tais arrangernnt neg be used when these contrioutiees are
u.=1equa1.. In the early ;ears of such an arran1em01t while

the son is young, his share of the net farm iqoowe may be

°2aller than that received by the f 1;3er. In later years,

L)z|

Y8

as the father's contribution becomes less and the son

increases, the son's share should be al'uvsau to mnke it

more in {reportion to his snare of increased rasyonsllili-

J; in management.

\I‘

Table 7 31ves an e.en)le of how income would n3 d1vli-

.11

 

 

 

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cow Plh}'3 eaqul 01 Lue1r laser and TilRJQAQflh.
r1 . ' v‘. . '~". . x'\‘.-—'.‘.‘., . " $.- - . ‘2‘ ~L .3
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1. _ ~ I: " .\ A. v-\ ‘ Y) “.- ' ‘,‘ 4-, . ~ -‘ '- t r 4 . v '\V..- - t ,w\
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$3122.12? 11‘. :713‘3: 3:11-21:1"32 :.—:—4:.':_;=:_‘.;:r;;—: . S':"..:.:-12:__’..'2 7. ;;~L.1..".-—7. -:-:'::.1-:.1.2_$.:
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" l ‘ I. ".f' ‘A‘ r‘l'fi— {— ' OA"’
.DI‘: .9.DOH(L.L00000 4"”.()."\ o 0.090.330.000030000000' " )
0-- - - -— fl ”1* 1— —.._~_4‘ ‘ . '-
: 14.. 1 ' '-- ..3-,.' 1 ‘..‘) , Q '\
c'u‘u‘ta'. 1311-'[.JQUoooonoo ‘r;,.‘-‘ 000‘.‘ “J‘J'J
Third ru1lance +x) ne CJKWulew
accorJJnr to NH a built con-
: " 1' .111; ‘--,._.
trlouti‘131\1n tn1s e1u We,
’5.“ F '2 Q", “ -‘
JD " Jflloooooooovc-ooooosoo0004 =I.U,'J|-'O . ~ (It) E 1‘32“?)
"' w2"]. ' ‘ D ‘ -117}.— i A “7” ) M 1 "If?“ ‘ ‘
Ant“). 11100'TBooooooooooooeoooooouoood ,3, 1.?‘4 a .L’J‘t. V’K'L’
xm:.n1:.1_: swam-r.- 3W1.m:1; 3-: :34'344‘13-‘k-z 2 n 1 I Iguana-«14; am-rfi . Vacs-.1: ':'.‘..:.':'.‘:'.

 

I}

(u

h ‘ J- . -\ - - .~. \IT "‘ "' - -- ‘_—\ “H ‘I- - ‘ 0.‘ ‘7‘ ' 1‘ ~
) -1 tether 2311’}. $011 sad-v “01‘s. EC” 0*. 931‘ . :3 co-flezm'lts, til-1'1 tut.

w \ 1-;,~.. .'~ x”. “h ‘1 .r'; .1, 1 .1. 44“:

fit .' ”32‘ 8.3.x anally “t” c3 rule 0: lay Lard as 5011 8.8 01.13 01 ””9
‘V .‘q ‘ n‘ "“ ‘ 4' ‘ .-‘ -- .\ 'I r I.—

tenants. ”ne 111ner and son as co—tenadls d1r1ue t1e tem-

ontribatious and income e mall’, an; the

iataer as lasdlori contrib ‘ es the landlorfi's share of ex-
nesses ald receive 5 his share of incame. tuck a1 arran*3~
tent mfif be desirable in situations where the ruslness 1s
arre a1d the 831's share of oersonal rronert' on em GL'
basis with the father 1r yreater than the son is able to

D ‘\ A I ‘1
v

{4) Aaother flaw in wh cw :qfixer and son eye axe as co«tenawtu

H-

3 one in Which the fstzer aui son as tenefits rent the
real estate from the father “or easm rent. The faioer sod
son share equally Lu the ovnc:ct# i; of persooal yrojertg
and in the labor add mane event of the farm. Each Tats
one-half of the tenaqt's share of farm Oferating expense
and receives one- h if of the net fltrm income. The father
as landlord receives cash rent or the film and pays such
landlord's expenses as taxes, insurazlce, and reie irs on

P

‘-

rm 1morovemeots.

p

inder any plan, one of the important fgctors is arriviqg at a
fair value for tie rehtr; bltions of each party. Land and buildings
should be listed at their loaf-time normal market value. This Value
should not be chanfefi‘Witn fluctuations in price. Ereefiing stock may
also be included at its long-time normal value. Esrket animals, feed,
and supplies may be valued using current market prices. Farm machin-
ery may be included at t'zle deoreciet a" value es taken from farm rev-aria.
erest rates veiig usei currefitln for real estate and chattel mort—
"ares shouli be satisfactory for det ernrninc the vahAe of contribu-
tiOlS of ea.l estate ed personal property.

It is sulh‘st i that were rates for the fa her 9"d son he at
the current rate fer the community. In setting wage rates, the needs
of the families and the ability of the farm to provide income should

be considered. If the were rate is set too high, the current farm in-

come may not take care of it. Families me; be getting more than they
need to live on and little will be left for division at the end of the
;eur to aavly on debts. If the are allowance is too small, families
may he '0 to make unneces osary sacrifices and current living 3mg suflcr.

Cari tel Accumulation: There are several ways suu ste:j t

---0-

 

"' 23-. , W ‘1 ‘ ' “a? "'- . 4 " - '23,: 1 "
‘ 1 ' .* f" ‘ v'fir- *- w- - ,- ‘x‘~ .Q - ‘ ff‘
KL, .; cr- ed! l't» ..'. a 1,3. ' ".

‘ ‘ I
. 0113:: in.) e ‘ Ffid 4111““? 1’1 . 11‘
. ‘13};
.b ' 3’ I -. ‘~ . - .
(Q I: Tue 3“‘1 ’EL— r-jf'fl.” fa n} g 31:1 3...).
, : 4- ' ‘. ,, n , .-
and ‘1‘. I"? h. o o. 1:17": 01 c v
-r¢ws fon £13 fiufiifiess 13d 1
.1.“ 3 .' ' . n ,. ~- : . ,.
‘1 L’B Fifi-111 1:01. Charm! '..5‘ a"
(2“ mv' " v ‘~'- 7 ‘- Q o: q " r
V7. 1 ; .43 30:1 .xv . or .r cm ~.0ne,. and

re

4:.

11036 for an an

teratt in tha forgonal frojertj. dare tfiis is 33
90?] {hand he e::"\3<:t3yj to 333.}:3 {waynen‘rs to the fast.
33 he would to anyone outside the f’nilV.

(4) $43 fathe“ ma; make an outright 511% of a uWunEfllf
1: personal progart; to the son. "n 'avc 1n53¢139
sim;l; assumed +hat the non holdzs a 013~nalP iniérest
pars o:;1al progert; and income is divifled on that :

lnracfiarlc+3nv

--.. ..-~.h-—~-..-.“.p-O~O

 

T‘- ‘ "\
LIOLB

7‘

aunt neceesar;

of Farm

vty

:1;

ll}.

earnlnjs

.t

'\7 ihgfi§o ti3‘1.:._

.-A:-.-‘~-“-

the farm operating afreefients 3%”6iei i:
select3i as some 0.? the more SUCCLSJfUl,
desirod'wnen compared w 1th the Eu: asted
tural col‘e-e lqrm wanagemvnh workers

only 133+ percent of the 33:3

t0 neir farm 030 x’

m)

l\\
"931’;

[23, and

In abcut}

s stuaied had

xenivs. The

N B ‘1‘. 3

Fur-TE?

1 1‘ r; -‘ ‘ v
. . . _ . s .\ .
-L- . , . » 1 k
3.3 1 L“) Jsz) QQYLI
u ‘q 1;‘ f‘ q ' W. '1; '3‘ 's“;‘\ fl i‘ i

o? t;3 iAnreusa of liVu' we.
(.3 3.- .- 31-; «I 1:; . d- "‘1‘! - L“ ‘E 1.; ,1 “7-,
as a limitau 1 out at
1‘3 5.5-}? fit .

A”,Ja09 a hal. inherent in

33? his indobteiness from
tore fathers tafa the son's

O Q on

5; r°~“3*vo *‘11“1:

--_—‘.--...g~m 0"“-..

south .31+r&l

ITS-“.11: of them 3.«:.f‘1'. .11”:
standard: 53+ up 1y
7‘01‘ example, it was

an“fih5w~ H: Ti” 3

1_ 'V ~ _ . .. "
C4313}? bl mn‘ceflf. 1:11.;

’5
.4

in11«3 1:513 and 100

fito

:11] 03119.3.

{”313} 1:3.

.‘
k"

in—

O ‘Y ‘
-..I 3 \a ' It}
‘ ' .
N a“ W,
I ‘4 l ‘ I ‘4‘
. : '
“11".?! “.
,u :3
u y c
n 1 w— ': 7-~
I." .L \t _ D

"3338.

Althou;h

t E 1 a. if.

I. 3 ,3. <1 1'. 1 '7'?

’3 17 {‘13 151‘“? ‘1

‘1 “ 1" .‘ ‘ "“ ‘ '.-' '3"-\ ‘~ .\ ~‘.';‘ t't‘r\"’:‘ : p’\"‘l‘ <5 ._ r3
........ 'J (T! ‘l'l.) -- ' v t" -" ‘ .) "ZL’: -o'_-""‘.'_ .q.“~ W -‘-'-‘,,‘t. ,:-'t ‘
' r _' , ‘ 1 1" I o ‘ a
. v . . .n - - n. .L .- ~ . .n. ~ . ~.- . -.
tee -1 net unfi JQJ 31a owe -ture o two lflCJme 9341 reeelrofi.
‘. .~ I 3 - 'I' I ' — 4—' . L - .'. . 3 . . .‘.' . .
wave was (30:18 *.'.‘.a'%.f'€tb.;8 e"1'7.e]«:e “nu-J NHL" r‘f‘ Lne writ1 “1151:1335 overa-
’ A

.q ‘ ‘ " - '. yr ~u N 1 - ,: Q ' w. J- -‘ .- - _. -. r- ‘ . JA- ‘- ’-
9 reeneutm oezmr 4584 were waotdrdufi aytuv qu
‘s ‘_ ‘

Professor 5. :. F1111 Mf iedirqn State College in Special ullatin

‘.

330, "Fath1xr anq Eon Farm Pazmtla rsnips".

In the 48 Farcent of the cases where it was diffi cult to de-
,ect ax, de: in he relationsnip tetxee 1 coqtr ibutinqs and income re»
ceived, it was quite common for the fat‘er to furnish part of the
equipm eat a .11 rag certain erenses. In sore instances, the son re-
ceived a share of the net income. However, it'was d5°finxlt to dis -

cover just how the net incnne‘was determined. In other 033!

w
..7

u
Cf
0

eceired aE1are of certain ante rg -rises.

(I)
o
a
H

In men; of the situations where only oral agroewents existed,
and to some extent where written agreements were used, both the father
and son expressed a desire to improve their Iqrm oper-atinv arreu*°1t
They appeared to be groping for a pore satis,qntorg solution to their

problem, and seemefl to feel the' such a sol tion must e? ist just be~

I-‘

good their pre:elt sphere of knov ledge. ost fqtuers afipeared en:-
ious to be fair with thei r some, but were not sure whet might be con—

sidere d a fair deal.

None of the fatners expressed open objectian to having a writ-

ten agreement. One or two indicated that they were gettfin; also: from,

‘ as

'fiJo

and didn't believe a written afreement would Help much if a real d ?
ference arose between them and their son.
In a few cases, fathers avroarel cautious about juttinr am;-

thinx in writinr. They seert3d uncertain 0: ut the son's interest an”

at+ tum“ to‘Nord the farm business. Eaveral innjoat ei that the” ha3

'0 w
‘ ( , o , -‘ 5' 1 V f .‘\ L l f h ‘ .
- 7 J i , n i ‘ ’c‘fi . . 1 ' ‘_ A» u h;
- ”‘ - .. 7 " ’.-‘. '- - 7 , - a
3“ 1’ ' ”y" "l ‘ n". ‘3. on . “ " 4. ‘ NJ!“ . " "‘ .5 7‘ ( >4. "mmrtxl

7"” “ ‘ ‘- ' ’ ' ‘ I 1 "' v‘ » ‘ 'fl ' 1‘ 7‘ - . — 4-,« r -' - - Pr p - - . . . J -.

Wunl we recall + “a rel; of Luand zed.eru had to meet er a on xvin.»”
- ‘ , . -. . — ~ - 7‘ .1 '. ,. 1,. , . _ -

e24 "rorovo~ one 19?, Flow :or Mfcm 5 fan n+her have. must of +39

-..~ .. . 4 ‘ .t. ~.L , a-.. . 4, - ,. .e‘ - ,
eon» “vie a 19 to have 9 791'? e of favoratle Prucea durlfim tne «at

‘_ 9

eare. A few were receivifiv T. I. teflefitS'which halved them nofiuire

11703too* enfl eqwzjwnnt. Under such conditions, some of the some

'\ . a- 1-v I. . .- g 7“ - -" .. “1 ‘“.
were aale to establish them Ciceo 1n a feJ yoa3s, Wueva tnezr fatneLt

{D
,9
"3
U,
’3
‘4’
"Y‘

hafl Spent 20 or 30 Iarfi work in orler to accomolish the sowe

result.
Sons aopeured to feel more keenly the indefinite nature of

I I
c '1
\

oral operating agreementQ, and were very much in favor of fulti.g
soeethin: in writing. In many canes, the son had nothjnf to Show
that he ownefi a share of the livestock and equipment. In one in~

stance, a son hen been fromieed the farm and the father took the at-

titude that it'qu the son's farm and he should mote any anfl all im~

‘

provements. {at the son had nothing to Show that he was to get the

farm. If anythinv should happen to the father, there would be seven

C.‘

other heirs who would likely be’vaitin; for their share.

In another situation, the son workefi and helped fay of? a sub-

.1.
VJ

stantial inuebtedness. E0 was to receive a half interee' in the
farm. This son not only had nothing to ehow for his interest in the
farm, but also nothing to indicate that he held a oneohalf interest
in livestock and equipment.

agile oral agreeants agyeur to work out satisfactorikf for

other and son farm business operating agreement”, it is only oe-

eause of the ability of all parties to fat along well, and the sin—

E;-

oere good intent of the fether'to treat his son fair ' However,

. .,: -.. . ‘- L3, .‘ .. .r. ' - ‘x; - .‘ ,‘4. -. . .. ,r .
cu:;$ film 0 son *u-ng ne “”5 to Fifi fa “or, Tue sloultarn we arCIC
.. t

C..-

--

snsterous for the son involvefi, in s-ife c: tse fat cr's hood in-

3

tem’c.

It would aygear that ever; effort should be rsde to have 1&-
thers and egos put their farm oyeratinfi agreenefits in writing. leis
would cause them to ;,e more oor'tglete, at? Wr-ulfi :_‘Y"I'l7"‘.‘.t the £«L'1'5

interest, to es; nothini of removing much Cf the unoertainth which

rwvf some new face.

5.).

It s eriie‘t tron the swell numter of written agreeyeuts
found that few fatncrs and sons are inclined to drew on a ferw Lus-
iness cveratine arreerent themselves.
the; would welCOfie help in gettiNg the job done. They need someone
'ho is able to help them think tteir protlom through, put in writing
the kind of agreefent that test sects the r need, eel tnsn imiress
on them the need of makinr adjustments in the agreotent from time to
time as the situation changes. If fimis could be accomylisned, one

f the weakest points of the farm tusimess opers+lng a:P89‘€Ut will
have been greatly stredjthened. At least the eleveot of uncertaioig,

esnecielly on the part 0? the son, and the orgortunities for disa-

frecment will have been sreatl; reduced.

Tenure 0f 47’0“?9f¢9: It is Severelly reeomrendeo CVGt {other

-—'—v u...”-

 

‘

ans son farm business Oferatin; agree anus te oomtimuei “vow ;e9" to
fear as lens as they are setlsfaotor, to toth parties. They should
be reviSed from time to tire and afijusifinnts mafie to tube care of
changing sitrstions.

3

There are use; factors which atfeot the ten re of fat e? ezu

son for?" overs-tin: arreerpmts. A Pew of t‘r'e more izi‘_:(;»ri‘.a"?+. footors

,“ ‘ -.I I 7' . 7.. .V ‘. ‘ .
fill. 3.26 "7 ’,.'."."f "l I'M) Cr‘fil‘t" ""

(n

\L,‘ ,. .~,.-
I

'3
I?
'v
r.
$.41
J
,4.
—l I
f)
’7
|‘\
C
,J
5

‘-"c v-' P" - ln- vvrfl ‘,3 17. 11
'nl m« <-« to rd elmvrne;lztu nor:

{7 m ‘4" n 4. . . -4 .' - Ar. . w .'.

\u) L e erlli.; cl eve fare to rror-de a satisfactol; stenret‘
Cf livinr for filth re.cies

fl.“ r:.‘. ,-. 2' U, : , ' ,_ i 4 ,_\ ,..‘

‘e) .08 troyortlon of farm earnsn 3 received 1; the feuher HUG

the sen
(3‘ ?he son's ecuit‘ in the business at the teeinoin" of tie
oferetio; agreement

(6, Frovision for a second family when a son who is siofle de-

.4.

c des to marry

(7‘ Ehe farm operating son's fliture interest in the fare real

estate

Test of the father and son farm yeratinfi agreements in this
study are continued from year to 3eer, apyarently with little thought
given to terminatinp them. A few ex ressed hepe that they would con~
tlnue fcr men; years. The length of time operating a reements in
this study had been in force ranged from one to seventeen veers. In
the latter case, the father was 51 years old and the son 20 when the

.

oyeretinf agreenent began. This father continued to take a fairy"

active pert in the farm Operation for about 10 years. Teday, the {er

I

ther is 68 and the son 37 years old. The father is no lonfer a;le .0
do much physical work and actually does not assume ran; of the wane-
geriel resyonsibilities. It would afifeer that this father and son

farm husiness operatinf afreexmnt sernei its most ueeful jwrjose dur—

- ‘ ~ , a _, _ ..- - ,-. ;- . a. f- .‘-.,:;._ .. j 1
in: fee first L or 12 3ewrs of its llze. a? e1 t at, tue ;u“wl e

neoied to te active in the tuslneas, end the son at Se fleers of e:e

1 : .r., k“ -l.’e L i: '.r %:n Ls=n« a
‘ 1..

"' ”we “f. rat-v 7W : ..'.v‘.‘e “'2 e3 ."é-‘W'? :7
0‘“* “- “ “ ‘1‘ ”*r 14 zwq-s. in c:uw firstmwcc,
years :13 ani tVB sun ?5 “he? “he farfi Ofnr~fia~
*rn rt?“cr‘. Tie quLer is rrwu £5 and tie
ir.‘~'__' the rt 2 or 3 fears, this fa~.her

tuflcin:

a much less active

-.

'_ .
Lora-1

‘.
4
.f!‘: “f, 'z.’

I __ ‘ _C. . ., _
-UU £91." -.81' SIR:
:1 W‘, 'K* ‘.'i "' ‘ f‘
-« ‘ ' 1n 'V'inll

01 of

son 47 ;eurs of age.

1‘ l - .
tsle fil‘g".

\‘ Q
‘42 c

has slcwed up considerably and

In another instance, the father was on]; 42‘ ;.'e'g:':s 71.3. and 3:5.
son 13 when fheg b9593 Operating tagethsr. Lhile thiu father in on g
54 ;ea:s old now, ill health has “racfi*~alla forced “in to raw-re
Frcm ?xfla 2:. The Sam is &*r~ss:"e, an? af 3? gears 0? 143 has al-
mnst cov;lstelg faccn over tJfi ":3?1t101 of the farm. The fafiwer's
snare of the ihcnme has teei reduced to one-Lourth n? th: nut farm
irunafi.\. TV: a is (W19 :7? 'Lh£2 fc.; ?:L“9S IifLLEiH- :fwiare :zfi ra5; H"-‘ '+- “a:
3*err1 r¢z3vP tr) taiwe ‘.n‘0 C)? 2: fi - “artivil V'w=ro {file .Fuiilur"3 t‘0?fi1?i ‘i53J51
of Jakru"uki untuyfai?1t h9r2k-9zfl ~re-s,r reducefl.fhha to 5‘5 $.23 3r
ill usalfifi. Thera ware a mum or of nthar CflRnS where it fifgSKYG”
that 9933 such afljustwmlt shnuld he mafia. ?w$9rnr, tfiis if a diff;-
cw‘fi fixing for the son to Fn~jcst, and where the fflthar dresn'fi r¥¢-

Offliza a need fbr such an aiju

From ohservatifln"

‘nr~

- L

r“

{B be? and can fiun

ava"a“e

.' . L' . 3..
befiu f “CLIOH gm?

throura school my}

I- (351’: .
s’ . .U

.3-
fab

whnn tde

gration and Hafiagemant of

in this stde, the averuc

331-“ a 1'3 or 1:71
t0 deW‘e 9:11

her is no loafer able t

”i” ‘ ‘ ..L "J" .. fl J" 1
Q 4118'] ‘1 1v 3-." 31331: J.
. . u - I 3" u
da 3n tnls eta: 1t

.
7‘!“
. x

sinasa

4-:
L) . .‘L'3

J. ‘.. . ..L
O has? 9.3 Sffu
' ‘ O ‘ WV
TIME} 411:4}.-
- F. 1A '
e :p:3 1 t ma fan

t

8"" ’3’} "'8

Lve 19
‘ - - v
{181‘ '4‘ 9.5

r)

L
.e

:11?

,
7n r» n T)
n. ' ' 5v .

4.1 ..,'.
"ILL "

finfi endin“

' 1 J»- ,
3. 1 ‘. it!

~

A
”

J. ,4 \ ; fl“ ' 7‘ ‘ r I . ‘ ' r ,7 ;_ ' ‘ _ V I. ‘ _ _ . 7’
a <4,v x. a; irks s L_e3 ruse fur” a r:%« : d rees5.n,?qus ten er.
" A
i I
\r‘ - v 5-,». ‘. fi, ‘--.,.‘ -.~ {_ ',_< f‘, ‘ . .. .".
Lsd-J + a. 3".- '2? $1)... . (38.1 t0 a-£~. r.‘.' f) L“?! - :1“. 10 (51‘ If; b'ea' 5‘. . (1“. ‘14 15’1"} {1.8

father is :3 to :2 years of 9:9, he will he in to ihiai rcricusl“ of

retiring. I g that time, +he son will is between 31 and 33 years of

age, and should be capa‘le cf oyerating the farm as a tenant or anger.
where the father is young whel his son enters the :usiness

with hit, it is conceivable that the father and son operating agree-

nerm Rdébt serve a real pur;ose for as many as 20 to 25 years. 3n

the other hand if the f'ther is about ready to retire when as takes

the son into the Lusiuess, the farm business operating agreement

might be very short lived. In many instances where the father is

much past 60 years of aie, it is doubtful whether he should enter in-

,.

to a partnersnic with his son. It will be a short lived relationsh

L

5p
at best, and the hazards presented by such a wide span in years be-
tween father and son are great.

Parents need to rec03nize early the importance of getting the
son ready to assume the resgonsibilitj of operating the farm. Remy
times they may enjoy greater security in their later years by allow-
ing the son to take over and keep the business Operating efficiently,
rather than let it decline as is the case with so many older operators.

From the infbrmation gathered in this study, it is very evi-
dent that 4-H Chib, Future Farmers of America work, and short Course
training contributed much to preparing the son to take his place in
the father and son farm business operating agreement. It would seem
desirable for these services to place even more emphasis on expansion
of the enterprise projects, and considering the entire farm business

as a unit. This would not only help the son gain greater knowledge

of the technical side of farning, but would also he}; hin_to build

forsonal projerty.

.‘ .' . . . ‘1. 7‘: 1 "., .
eontr notions bx leon ;art3:

Labor: The sons in this study contributed an average of

 

Lu

11.8 months of labor to the fann operation, while the fathers ateraqev
only ll months on the farm. A numter of fathers spent some tire in
the south during the winter. A few had outside work or interests in
the community which took them away from the farm. In a few cases,
the importance of havinf father and son each take a two weeks vaca-
tion w s stress.d. However, feW‘scns actually took that nmch vaca-
tion at any one time. are of the advantaMes of father and son work-
inf together is that it is yossitle for either of them to have a meet-
end or a day off on special occasions, and still hav sore one around

to do the ChOI‘CSo

Land and Buildincs: Fathers supylied 74 percent and sons

 

26 percent of the acreage Operated by fachers and sans farming togeiher.
Takle 5 on [age 15 shows the arounts of owned and rentei land contriho~

ted by father and son. On SO eroent o? the farre wnere aficitional
land was rented, fathers and sons rented the land as yartuers. On 8
percent of the farao, the son rented land to notch owned land ftrnish-
ed ty the father. 0n 2 percent of the ?arws, the father fr0?i39§ all
the land toth owned anfi rented.

It was quite comrcn for the fatLer not only to contrifiuie
his land and buildinrs, but also pay taxes, insurance, ani regairs
on the huildinrs. In nan: cares, he received no cowgonsacion for his
greater contribution of real estate'whon settlevcnt was rafe. a few

prathers indicated that their son had‘worked at hora all

ani that the addition of land ano any imrrrvenenta wrulfl not hero

a
i

was unat-ie to do as .uauch pix/sisal work.

[- 4
:3
m
(T:
.4
ff-
r:
W
H
H-
:5
:4.
5‘0
’3
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CD
:n
:1)
U
{4"
O
F J
*2

it . . .0 . ... «
Farons. fflffifl‘? c»; G+02Rwfl

r+

descent, it was <3 fficu 1t 0 detorrrdne the iezree of -:".t.v"=orrhin, not

only of personal prorerty but also of real estate. qhe ouston is for

- \

the sons to continue to farm with their fatners u til it is possible
to Eu” a farm for the son. where t'rere are several sons, everJOoe

works until each son has a farm, or until such time as the family

1

seers to feel that the older som nr-ve Ilfl’ie their cortrf.‘r»ution to

'tne fan.

\

13’. Each son eventually receives title to a farm. The ounc—

In

.L.) 0

es son frequently gets the home place. when the fa+her retires, he
re; move to a mark; village, or occupy a second horse or: the far-n".

L'nfier such corxlitions, the cooferative family og-awz-idn;

-'

arranfierrnt an; be terminate} as soon as the sons have all been bro-

virled With a fan? of‘ their (Wt-'11.. in wars! cases, tine fitter and ’i'OlZlL’fiI"

retain score acreas‘e from which they receive incor‘e as onr, as they
live. The sons continue to wot-1r this lanai for their failer in re-

turn for the he]; they received from his: in :gett’nqj‘. started in farm-

\

~ 5 £8. (31701." I? l“ w: :41} FF fsjfzi -
0

¢

inr. This arranfiel'errt seems to work unite sat

1y ties are strong and the land is very {reductive. As land bSCCW s
scarce, it is increasinfly dif?icwlt to locate fares for the tors as

one family Cid? 8.“f"t'l!‘ISll another for land in the coorr'izrlity.

—‘a- ~ ‘ —' .- v'I P u 4'. ‘ , v: , j . . + ‘ ~-. n I , V ‘
gem-om». :rot-eriu. : me (.1...*ziw).“s*;-:n of :srsonax .ru art,

 

"all-"e :1‘n,t:.}‘:er aid son was: mush more near 12' enual than the real esm

v n

Iv
.-

l’é'xifi. l.“:’1ir‘1-;!-seven reroeot of‘ the sons rer'roriyeé that t“,- (named a
one-half ititervst in the farm fersonal hrs-yerty‘. E-‘i've :‘e-TT'(‘.r'-,".‘l‘. u, +7»:

‘ l ‘ .. ., : ' - \_ ‘ ;
sons Ferris-d over orievhaLf of the ruersona‘u. 3-».z-Qer't‘_,. m t #- hn m, l»

' ‘ ‘ . ‘ I ‘ '- u‘ “ r z ' 3 I. I " ' ~ 3 . '7 ‘ $ ‘ ~ -‘ j . -.‘ 0~ ',. v
. 7 ' 'r f . .‘ " " , , 1 ’ 1 1 L I " "‘ ‘u, ' j i w _' _* ; FQI? i.
(,,?‘;c- _ 1:: ‘ f 4‘ .'I_fl .‘ “n a" f “4 ‘. . I {‘0 r‘ “5"" ' 1 " ”I"??? '1 7". F“ ' ‘ ‘11,"; I' if: (‘5' ."’!"l‘

l‘ . . u . ‘ .' . A, .. .- ' ‘ 1 ., .. ' A. ,l- , , , 1 ‘i I . ‘1‘
Sixfli €33" F.8'd 17:31? 9 finH.-;.Y" 0"“1“Th]?7 (‘1 (“73' 3+1": ' CU!” U;L"-".L‘.?i.gl {7‘ flfi’_‘.+ i‘”

in atmt 1f: p.Y‘~3‘?:’:t of

retained f‘a ll (warmer-skit: 0*" the vet‘wev and

in s we definite TT”OTZ‘nz“ll’l/C:Tl

were 3:11;. 1‘3- 71“ rmonznez‘y and

equijrent

I
\1‘

on 77 oer-cent of tI-=e In. aim ll r'w‘rcent of the situetfcu’ts-z
.V J. 3

\4\ l

the certain meo'nir'es exec} t‘rve son f‘w‘nished others.

Each reoe veal the trarfte-f o--m rzy.o?1f?..r1erj;.

Vv

In 9 few histwm—‘e: w‘rmre the wex'hin- aw".

- b,

not owned jOir'xtlj: a farm tree-km“ was 27“-rc‘:‘na.ser‘ out of' tee form in—
eo‘m azr. (“wen to tie Son. This arrmr'errent seemed to satisfy the

n the fm'mi'rzfj opel‘Ui-i

a
W
.L.‘

son took ”reat- pride 1n Whit: :3 tractor, arm“: sequel to E‘ee' t‘rwt ."e
was frett inf: 931 BC 5 a

"we. re the son was e‘3'*i‘:'er t:u;rio_:j a size.- re of the *3-‘11.1._;.':--r’~‘+
or all of t‘m new eouigmnt, father's: receive t‘ne entire trsr‘erm

+

I

' 1 ‘ " A . ‘ ". -’ ’V, ‘b . “ ’v‘ .. " w .-.
venue of 01": equ 1.34m not [5"41‘53“. :71 common.

merit in this met-Ina} of handling the ownez'shtij of 1".-.r.r~.bioer;:.

The fetuer he? be a little more Willie". to 3".”17 lander“: er'uigrxerat «
”We tracing-":1 of‘ his old .‘P‘tf‘l? 511+? just alwvut (HDI-‘GJ‘E his 8' vs”: 01" i e
trifle of a new mahine. '1“?! son 77""; thin}: the matter over roiled"

carefully before he [ure‘nases if he was to 3511+ n;- casz: f")? “at: , 7.—
tire 81,1003}? of 3115. share of the {xv-release _"-TI:‘."!*‘-:.

111 Sitnsttdcns ‘.’a'+«—‘;‘-€- +110 sun (”PIG-'3 a 50:7i'5'r1'd‘13 51‘s..” €71,717-
34-"7‘3-“fll: “"93"“? f, ""'~I=—t.’LLIu-”». etc.) 0" {11' “1""‘.' nl 7"'C-j..(v~’r_’,s '{XHB
”1"“‘7‘r‘t’7'7-"T’17t “WWW”: t" 1!: 1’»'v.'.'1"iz3f‘ "mite satishar-Hrik. 1 rs: +7»

\ . ‘ 1 - \
Q! T. (‘9)? ¥ H (‘ ‘¢l .- .N, I” ‘. ”4 ‘La ‘ " ( 5 n- ‘ O 0- " ‘
L. . a- A - L- 3 ~ ..~ - ..4
'V . - - x
. y - .- , . + 1 ,, + - ,-‘ . ~. -.
szesrr or ~.n;:t‘ , era: a £21: 1-3’T9€~*‘Y B'JI1 rytfi,
A. n 'l '. - ,
. . , . ..-,
t 1- . \(o , r. «- v~ .«flv b m we yo ; -v- w 1 ‘ a. >4 1 ~ r
:AHS’.“ ti ‘u- .1... 1 P- 599 .Q " 3 VJ. i— ' ' ~ 0 lb -‘¢
. ‘

0m: , 1:101 w 1; ’ ate: *7

G ' '1‘“. er‘er’zt was The

volved in nakilag settlements under such arran~e

”10131’ 'ointed out in a disegssion of the son's

p
¢

tire

'n
o

busines

Althoueh fart aware

8—— ~—

h
pren‘es

_—.—-—

H-—. I -d

1.3'1:;oz‘t.=r1t: item
of the ex m1 3
(301.0 closely aSSOOl'xued
one in the

with inm

Divisinn of EXpezses and Iaeose: The most

 

folloxed in dividing ses and insome on the

GKFC:

father azxi son to say tqa

for 03.311510: 1.1014315. f, ouw-thiri, or one-E‘mxrth,
the 11100313 in the Same frayinrtinn.

I

CD

A 3-39 livioion

1‘

in
L}
( L

’3 .' .
Harare 1:1? w”?

RTOEGYV - . nolul.h in fixe

* .' :.' . .. 1, :.-_ I" , - . -1- -.1
tee olvlslno W”o useOllu e ler 1/3-1/3-1.$ or .}-.‘"/‘, film} »a:a
' ..4.. ... .. -: e 0'" w.. .. o 1 ,- . ... s (.1 '. '1
1n the lautvr case uldln LO ch:.ut o- tle 0 131-4” at. r» a: 1
J-l" . . r I I u. ~ 1" Q ‘~ ' 'v ‘1 , \‘~ ,> w‘
" ‘I‘Ce L» f‘f‘ L416 1.100.? . t “I“ W ‘ C; {"r'cw‘nl f-x‘n" an; 1.1 t 1 :1 "2L
— ‘ -: n —~.r > | ,‘, 7-. fl L .Q ‘5',“ fl 7 \‘1 .U-] 4 ‘sn A
\Itv': hf". 2'1" ‘1. "‘ 131‘“ 1' '1 «'1 4 'u _ 1.0""! H .J‘ ‘1 ‘
" A I y . .‘ \ t s D §>‘l r) 4-“ w-n , n r '3 ‘~ r “ ‘ ; fil‘ 1 3 ,\ r ‘l 0,. u 1'
‘11 ‘Jq‘)ul 11 {TH L ‘J L. 41C; 4. L,a '3. "1 'vs.? 1 ‘ .. ’1‘4. . “1’1 . ' “I .L ‘1 -
*"- ~ ‘ ‘ ‘.. —- c‘ L - . - -' "- ~. , 'fi‘ 3 4 ~ \ ' v a —
were were: 9..“ Ft; _ w wed 2.1 {,. v -1311; ~11 :4 1e“ awl m. :1 : «4,.
. v . - - - w . u \ ‘ _‘ _
r1;.‘ .3rut, lrwete The"e 1:? '~1 1 : lvlvi1el e"learn rvw17r1 film? '+ :"

.gine mnetrm‘

Cowpl 10

tin" e.

f. C- 4“" \V r. -
.x Aelk' 5.4

fl
0 -‘~"
Lfllfl

Q ..3 '5

t 3p .8 " " ; -;_ " \r, r v“ € .- .._
_ - ' a 3- .,:.
1c a111;~u;t for arv-

sharia? in the

fact that
i"; r371 immune they

‘. ‘ p ‘
CODbldafsu

along

30 111111031

KL

P..‘..

a)
L)»
.H
:3
:3)

ooerat'
L

and then share

W '1 S

" -1 -. -
0.. J .‘A U: {s’1.k\
o‘eruting n~rae L.
x- \‘

zmost serum):

.V -~
Ilflh

I33-

.941 wt 11 I‘

Imqf

3: E? '-

"~?"r":’1 ' ' I " . 3' '3 " 'v- ’ ‘15 S ”Q": 7‘ '1 ‘: .r:
*'- w” ‘ :1: ' 7, "1* :31" i. :' 11-. ~ '7 1‘ :1 '— . ‘ w :.
" <54] r; i “L' 1.1-1 1 ‘ 1‘ -’. . '73.! ’71-.) 31' 0" : +.’. i 7'2" ,. .‘ 3-31 “ :
017:1‘a firvl, tzx‘i' L fi'tnzh I)? {:41 {33?"3, flu: fa".7r r- :r*avi i};;* Ye
-cf.? all ffikl £3123. 31 “1e crru;, ‘Fa fiu'x2r ra"dyn? M’s 7”»“fi in t a
g‘?bmu""fi;'er ::;n r“?3. e EUHIE, df'wumua, 59 ax 03w~3 uW'i;
.,.1. 1. " Yr. . _.._I.. ‘ ,. ,..\ ,_ _ . 1:... 'r ,4," .‘ A 1-. 1. '.
L-t -: 5 .,31 ' . ‘ x - i at; a. I tic: n.EL.:9 7%.: 9--:. f....1r;1‘ J19 .11: 1:)i"1 . (1 ‘1‘ \.-... -
‘GY‘:13 0? {ha Faf'? invluiGJ in *de “tu7J, the fa”? “;??aiib; Cgréfin
"rent; .-.1.j'“u\1133'wi “cc-'0. clcssai‘ a i'jf'ji-HC‘. ar'Dj‘ 13.11:? 1"‘7extwt‘é fil‘uiu‘a .1931? a
which frobahlv accounos for khe F~fi71r gajrug taxes awi fwrfl {figruva—
’ifzeili‘. ex; 041—“ 9.8 .

:Zaa :31'11113101 01° :2 '0. 11-5235 and farm 3-1100119 0:1 faunas in first My

*1.
0'}

 

 

 

 

 

 

 

‘ ‘E I ‘ ' a V1 ' J“ ‘ T ‘1' . I V. . "—1 u - . 31‘. ~---— 4' — '— -' - w 7.,
Tacle d. :JFCGJL 01 -a;1ars :gfll? 0r :eéea.1n; ,zfzvxeut -0”. ”n:
r~ P 71'"? n 4“ ‘- au). '15:» *1 3:1 i -Fr:,'~“ '1 ~13;
’73.; £.'.‘ '2 I": ; --- :‘2__."'.2 . .21 .‘ ;;.—_.._' '1'? I. ..‘ ‘.‘ 1.3-3 .‘ .' -2 .._.‘ ‘,.‘:_'Z...":.‘--..’;"_.‘ ._.‘ ": ._..‘ ”3.": ‘23: .._" ° ..—."’ .1 .._." ‘.:.‘1_2“.’.’."“"._._"
' f '. _ V n ‘ ~ 1 1 _ ‘ . . .._i.
1‘27”“.1‘. [1; f“? 1.. {1.11; - .1 Ian'- e371". : r” z x: :- ‘~
. - / ‘ . .
"1"““ Cr re?“1?‘%“ all, ?f‘, 3‘7: °?1.:
:» i 1"“ _;-_ ; p. in-“ .. ..aov‘- -¢ mihm‘~.i «nu—.._- QM; - r.--— -- 0-...-
- . . ». ;‘-.'"":_‘ :(lla- altar." “fie.-
111 ifltiriazlvle i 1‘rl .P‘urtfiu '910 4*1“?
m..- O n - aw...‘ -. ~--‘..—‘.—-. -’- u... «T. -- -- .. P --. - . Ur- -.--.—r.. awn. -‘ 0—- _. n o .- “n --- p. 0—- .. .- - --. -r- I v.-
EPT‘. enria .:
. I - I
Eu;ldlu" mantcaasce
~ JD: p° 10 in 9 .1 1?
’- \ . . u f - . -- '-" t. M) "' -‘- '
rova: & unharaaaa
q "‘1 ‘3 1107'" "111‘ 1".‘r1:-‘-(-3 :: 31." 4 . 8 l? 2 17‘: 3."?
'AAQPLiqetrf c: FH'aiiiorl .
.‘ 31-; In 4-: 1n {3 p ‘1]
"n 6‘)“ ‘ ~" no» ..‘v A. ’ r.- . .._
CL. »d r’J‘L (’1 lr ‘
H. a 6- ~ (- 4 p.
‘ 91.3“). 'r‘. -‘ .‘ c. .L H d 4. 1. 1‘
I ‘ \ - ‘ *1 ~ .- n — '\ | 1 I ‘ "I ..I r‘ O I"
; 1 71:?» t1) 1-. :1 : ..I‘ 3‘9. 0:1 :1 . "_.‘ l -11, l: 2‘. i l} I . E a. 1 .
‘ t .
: -. .-‘ . -. '. f' 4' ' h C‘- ' I n . I f‘
"15} 91L111ae ¢ 1 13 bn I 10 g d a 4 b a
3 ‘ . .- 1 I
— - z. .1 ' v , ~ -: 1' a 1 ,. 1..
leezgoox e; GJSB 1. g 3 48 3 0 i 2 1 4 . “M
. . . . ;
H 1 ‘ ' I . .
1. 1- . u l "x , J -
CI‘UU 93X 1811.93 1.7) 3 1‘7 ..0 g l'- , cu 5 "t g l].
.5 o. | l * I
. . g ,
’0 1 MI F: 1 f ; C, ‘1
mu lamor 1 4 8 4.. ,. 10 ; 2 _ 11
I _' -
- ~ . .1 9 ' 1 x c: E 1 1‘ 1 ;
1rneila3uous 11 i h .4 . O 1 2 E 4 ; t
.. . _ § 1 i 3
[13'39 1.1‘iIS: ! i ‘1 1
I _ ' ‘ .-
. I “ a , f ‘ ‘1 l r] ‘ I w A,
Cut} )9 @1138 .L. ; if) 4'3- . 1.0 c. ; 7. g 1 ,-
I ' 1 . ’ r
‘ ' - ~ ~ .3 0 '- ' '= I Cl
Iaer {rennet saLas a [ 15 50 : 8 4 . e . “J
1 ~ '- 2 .: 1 ~ r~ : l) i .
«0" $010.10. T1 .1 1» 51 3 / .9 - c. 5 3
. ; - ' ‘ ' I I I l
» - - w h . . '7 " l 1 n ' . 1”
b};en and wool su-sa L 1 lo “1 g 0 o 1 O , ”I
‘ - T ' : " I rv r . (1 <' ‘1 r‘
. .,. .. I; . J -
P0111 ' 4'1] 35 1 ‘fi 5 17 1 1'. 4. 5., i I I. . .. 5 4.»)
; . .
_ ‘ 5 a t n l" .' l 1 1
I» ‘v 1" f; :1 ’1‘... f; .1 7') : 1L; 4 3 ~_ .’ L2, . 1“ : I ’::
_, _- ' I
‘ .--~ - ' -- - a' -
ruf=xv11es 3 a l: 48 I“ 4 n J : .1
- . ~ . i 4
. . w . --\ . ¢ l
r1~" “ 1r-r'. .‘z‘QJefJ-vi‘fi ‘ -2 i 4 3?? 11; r i .1 E 1'
. _. .. .1 , - n . ‘.
. . r n i a n t \ ‘ ‘ u
-" "1‘ OT? ,5 ‘15:-“ 1‘51??? " ‘ z: g 4-7.» 1.: t.- z I“ 1 3.:
I . -
.- a . . . ‘ . - ‘ . '1 " - r.-
J; Mallqrwwfl1c ITMHX‘: & l P E £0 41 6 5 ~ :1
“.94.. . -..- -- — - - . -._- ‘- o—o-m o .._... t“..' c .. - - - .mL.-- ‘.-~I. --.—~ ‘“ w....-.— b- .—-—:—mb—v-~—v-¢lv cow-o -—‘---v v
" W ‘ - ‘ i-. J"- .‘-.‘ I-“n-..-OO -N‘- o - -._- -.—Q-0. -. l H -...-. "J.-. - fl .- -‘ -1!‘ .4..- 0 -q. n O F" C ‘ w - u. . O-‘fi.

 

0 *1 . 4, . r 1. IV :- . : . ,‘ ~. . ‘ L ‘
(‘fl' . r ~v.'.. q ’ x“ t ' ‘,.\'. . I.) ‘H 'V ‘nf‘r‘ ' ‘ . 'U 3“. ‘ "I :
(‘in - ‘-‘ 1‘ ‘1‘ .2): .‘J - 1' l 4 ‘(x _-'. r '4‘; x“ a. ' - r l 1“)
w.) .HJ h I 7:1” 1." a '7: 1 ‘ ‘- ‘ [1‘ n 4 - 1' . ' 4 ,.V.’...‘-. "~y fl ‘7‘. 37?":
'anwr, cud an?" :‘3: 3:2“. ,1 rm 3 w':“w...1~,::', eww ‘9 1‘0": 1 n f‘ “-r-
9}".1.‘a \f' '.’.V,‘"E.‘""‘r."a‘+ ’nk‘dV‘. t‘d’ ""~ 0 >.‘u‘_i‘.-;.: run my" 1 .t * x '1"L'.: "(‘I" “:7: ‘ '
fi;~:\m NVTF q: refifi'"zv * m :1nu 3 'ur ’*r,019.

L‘utf‘ :Ir-r‘ 4’9““: tie {Rivers axh“ I‘li‘-, (1.111 ..e jaid “"W‘
‘6‘}: Yurr‘i'msry“ f‘:':.i‘ 9.1". I‘CMI‘Wui 't;.»~= 5 Mr. '53 fr: :1. fw‘vz‘c rzz‘." ”£38. '1. 7111;“-
‘mr 0:" r1“ -:‘~ P‘finr‘e' ‘30"- a ‘43 “' 1*"3 9 EFFIe “01' pour?“ . 33':.'r3‘-'(::‘ it
is an aflterfrdsvavntigh fine faLhnvs "W"'LJhV aPEe" wi+a q “5W:*Hfi a-
!V‘MIJffi-t 0:" ml" wor}? .

EVismn or“ racei 1‘" 3:13 exf‘twm'm in T9171? 8 urflvr the: wear?"-
”.1“ "other" inwlurier‘ cam-3r: t'c‘nre hm fa’i‘zer's <2» 2‘3 was 9'? fez'wwwf‘, <3"
9539”": ‘5 berm—3 at, 51"") 46*.‘r‘ei‘i3, 01‘ '::¥::.»‘e the: “17:0? (Lid ‘01 8:121
3:111 e'f:e;1se.~: arzri reg-«hijfefi inmate. Fran t‘r:eir mm 13*.*e:;‘i*.c.~c?-._ or (34:343.:‘W

\\ . . - ~ *0 "-. - ‘- . -. - \ ~ . ‘ 01' ‘ 'w. .. .. ‘
«a‘-1‘h. In 17:! omen, “pare three tom. {hr-mad w 112:1 tue iawmr, rm“:

-u ‘v

‘0 o Q I ~ . . .
more was a 1vmec1 1:1 tile F8.-'::2 H‘umrnrrs-ozl as 91"9: sat-:3 were mum. .4

V .. .. .. .‘ '~ '\ 2‘. . A‘ . '7’- . hr . . .~‘. J."..
arm 01‘ MM afloat-.4. "La.“ i9.f.m;3"3 bflgi‘”) xii?- -‘o c: ,j Y“..:I‘CC‘.-U-, Lu: up.

.
5531': '9. or ’F- :Trén‘Gt‘Bfl‘ii 0:" the‘ 917:0. sues: mil income.

it v as aif‘f‘icult i1". 9012.3 insiiqncni to deterrnfsm jua‘l‘. w'igat
iiir‘l’.lrie"i in urgenscs in t“.‘e"'-;:3:"nining the neat inflow) {5:02; 17% “Perv.

‘ I ‘ A \-'.'
Anzc'umt ’rcww: was 125.13 to 1:023 a renerd of fine farm '“usmcrs, till-‘5
was falrl‘f 53-17;“:le.

’fe'k farm. inno;.~e, as fetewfined iz'v +9.9 "icky-".11 "l —“. '<‘-1::’.‘.=.

'. .fi ‘ . ‘. ’_ .. ‘. _- ' - .._, ..‘..' ‘- ' a 5 0' \, FU' . , 1
but) A tum. “a. t 0?" ‘me 913m. 111mm? Iv. ulzl 1.: 1:3 ._ t a ;. to.” 1‘ . “f? v. '-
A n

. ~ I ' - u
5111;: 5" u. c '1, [r' w ,H [my ‘r‘~ \ . :1“ ’1'” .L 1 f. “.34- ..-:" ”“1“ 1...
g, ’ I \_ “
o n 9 7—
‘ yi’rr. n 1“" (1“ f“ . 'L' 3“ ’1 j " 13'1": "(:0 1:1) L '1 I :"u'ffr‘or‘r 1 , F 'f!‘ 211:3 m 7' 9
V V
‘ 1. . ..2 g 1.‘ .« . 1.. r- -.- 0 J“, .2- ~ ‘1
g~unH1.nr's Ix-Lru‘, at? ,xri-fql"q 9!H:W5 0‘ en{.) 39 L17? u;fl‘ HU x», TH<L9~
. ,
1. ,1 - , z. - *. ' 1 ,. ., ‘ 4-x . "o -1 . _. . r] . ‘ -
u0°e, afih Uledurlfl b1+13 and hue vulqe G: IQFR 1 1u1+s 25:1 1n ire
~

I u o . o \ ;
have are not Jquludod 1H caléulatzng tne Her farm AHMQHH.
:aln ovneHHPS, as listed in the Lichi an Fan; Accounk hank,

Hclndn- Tupi PV““‘SL; crOH 9133139; Cdciom work aired; labor hired-

' I

.' a ‘ : .‘J g . n .- ‘q f 1 P- —. «
rurzfianses, renalrs, and o examin, G¢J8339S :or naun.no"y aHd efinjr-

. L _. ..

erf- rH>1uir and xan HWHP afifs O“ ligrnvenentv and cnc‘s a? new

.1._. __
'7 .._ 4. -_ ‘1- ' . ‘ A1..,.. ‘f a- .‘,V .
:wwrovowo'ts; iazus; ca~u rth; llvestock exja;he; liveh on; gur-

Hflses .; and r'bcn],a eous exgcqses.

, .- - _. V T—1 -' " 3 1 ‘n 3' “ - ‘ ' ‘ “ '
irh “an raln Aspoujt boon, fax; ¢naoge thlDQHq 1n-

5..
L;

-l-
‘ a

(D

I

s O [Q L—

-. .-“ ° A -',<~ n v- ' "I 4. a ‘4; v "\m 1
Cuma frouz 11on.ock a: u llveoconi pIOdJCub SHL»; croya so;

u.
be

3—)
Q
‘-
I

-' Ip" V H: ' I‘ I g u H A\‘ wrv O ': ..x
Herfar nei 0”? tag 8.d3 womaland1‘)rod-cts said, auctUm .91 d: H;

3:19 or reHLHl of ma? §1ianrv; insurance collecteF; builcinvs or

“ . '\ " . ' . F u“~ '\ '_ 3- 1 't\ 1"“ fl «‘ v-v . A I *‘ ‘ a «1
UUliUlfly Laterlal $011; cash 1939 COLlQu ca; agx “JnccllaJuuao e-
~" 4—,.
CELPVD.
‘ L ‘ “‘_"~V'_ ' "t ‘ ‘1 _ — v, v_ o ‘ 7‘ A
Lomplnhe anu aCCuiuuG farm remords shouLd be L33» 11 u r Her
- A.
'3 . 7'. 1": v“ f 1 rw (1 p"‘ v.51)!" ' t V ~'-. ~ I .‘r x -‘ 5"- - v .» - '~
\J.--‘ 1;)". 0'- 0 if“ 0-10 8.11- -...J/ 1;) S‘JD ls '0 0'3 3.".(10. .\"T‘E ‘ ‘3 ‘L [I ‘ {L'fplfi‘JH “

. s ‘ ' " I“! ‘19 I ‘ ‘1, fi'
8.? e lackf fli‘, race: fits arc? ezct‘mmns we 0:17-21 I’J.I_‘|.7“'"'F"71 51*1 the” fi(‘.'.t‘.?]‘.
V‘ - L ' ~ U '

“’8 ianlves nnnv 1FHH.£ +30H3 aHd resuEts ir little, 1? awv ren—
-/ V

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0rd C);fig LGHL o; iHPCJO ann exuenc1turen.
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77 N 1 ’ “I" - ~ ’ a" _ o w n .c - v‘ N ‘ a: ~ ‘ '
naHa-ea aha “no as to nannle than 18 one mhlcn hUQt De LYJQH 9%? a

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':':0.3H_'-n~z.- inverse is ezwi and "art of it 065

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1021;”: F1", to the father, and to :1 third purse belonging; to ten-e 90:: --_s

seen as a division is made, it is "me Herman]. 1:7.enr'~tur'e 9.211". yeti-r2113:-

5"". - _- 1 , . - n ‘ - .1 a . ‘- . .- _ ,. -, - ,.
“are are two or tart-ea M1. rs o; nn-mlnnu ialm 1': Halves 3.141.539 H-
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,q‘.u_nr and son fuz'n 50- :,'.._"‘:,:'%I'. One 0- 1.10 mess (to-LN! needs rs U0

.. I I V C D I 1‘ G v‘ ‘ ’. ‘5 .- 5 Q, I —' “
(“iii-QB 111003.19 £18 3.? JS .11-.8-'1 131, 841i nave Gash p-J‘LY 9511' tee-r F‘fz-e

of farm ergenses. {file-t usually Izzxggens is +ha't escH party 7:.3-1 :ny
for ce‘bain itefis aged at free and of the 2110211731, 01‘ when the milk cine-91'
is cashed, a settlemorwfi will be made. 5,1115: wi 11 be toizaleafl ear} ighe
one presenting; less th :1 his share will have to maize up his share of
the difference from his personal axe-mount.

In 50:”.‘10 inshazvres, the father 1119;: do most of' the s}-'m§:-z_:?ng
while h 30.1 1399‘}: sq: 71)::191113 reliing. in such cases, the father
"j her-die rncsf of“ the fitmnnes, and give the so") law's share (‘3' '3‘“?
Macrame left after mnrz'ettt operas-3.21; engenses have 7.36291 (11:41:93; HE. --A ?

Wu; be a ,f‘ond c.5LJ.sior1 of laber, “01,132 it fail” to j.ve i-.}'=e 3:723: er: "uv‘f‘

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buqxsess PXUUYIQMQG as -e Shea-d nave.

:4

Ajofiuer Sy853L1WJlCh may be used is to gut all farm receipts
into a checking account in the name of the father and son partnership.
All bills fbr fuel, feed, repairs, and other large accounts are paid
by check at the end of'the month. For small items, a "petty cash"
fund may be used, or each party may pay bills from his personal ac-
count, and at the end of the month receive a check from the farm
partnership for the total anouLt of bills paid. It will also be
necessary to pay each party a‘mage allowance to take care of current
living expenses. The secret of‘making this system'work as with any
other s;stem.is to remember that there are three distinct accounts.
The farnxlusiness must be kept separate from personal accounts.

There is a custom hat is used by families in certain areas
which is apparently a part of the European plan, followed by a numher
of families of German descent in this study. It is very interesting,
but very limited in the use that an; be made of it. Under this system,
all income received goes into one bank account and is used not only to
pay farm Operating expenses, but also for all living exfenses c? the
families of the fatter mid son. The writer is familiar with situa-
tions where several sons Operate with their father under such an
arranrement. In one instance, four nerried sons are in partnership
with their father. It is almost unbelieVahle that harnmny could ex-
ist under such an arrangement.

In the successful father and son farm operating agreements
studied, it'was found that the father mid son coonerated very well
in the protlem of handlirg finances. In £5 percent of the cases, fi-
nances were handled by the father and son tomefiier; that is, either
or both handled transactions. Ga 21 percent of‘these farms, a joint

farm partnership account was used. Fathers still handled all finances

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.‘ , fl . " .70 4," . i , . - r; .,Ti' ..7 ,,.‘ ‘ .-, . - ‘
@i <1 ICIVVEN- h :e ¢~¢ws..«icg-eg, tart on 14 Torunv t of tr-

the son had taieu ore? conglctel; the uanfilinf c? farm tfifif“PL3 fi-
Dances.

It was fcunfi that 43 fercent folldsed tre practice of civicihf
incove and paying exyenses as they occurred; othe 3: once a week,

once each mcfith, or a combination of tne above methods. It was Hr-

pareut that sore did not have much of any $“stem.

t

Cash for current livino exrensec care from a division of the

milx checu and err sales at the time of sale, or in'wcekly or monthly

\-¥

(0

ettlerents in 92 percent of the cases studied. Only 8 percent of the
farms received a specified amount of cash each week or month for their
current living exienseo.

Arbitration: Althourh it may rarely te necessary to resort to

C)

 

arbitration to settle met+ors which cannot be agreed uycn by the fa-
ther and son, it is alcost universally recommended that such a fro-
vision be included in the farm business operating afreerefit. iiffer-
euces which cannot be settle" se.\,‘sfe':+:nri1;-' are rest 17'; kely to occur
at tLe terminqiion 0: an cperctinc e;ree set. This is esgocially
true if tke arreement is teinf terminatee due to ttc inaiiiitg of fe-
ther aui son to work together.

The arbitration provision sir 1y states that if a satisfactvr;
a;reerent on a settlexect tetweon tPe Father and son carrot Fe r note”:
the matter will be Subnittefl to an arbitration coxmfittee. The father
and son inrther agree to abide t; the ioc‘cioc cf the co :jtieo.

It is customary for the father aha son tc each select one er-
bitretcr, and the two arbitrators so relocted choose a thirfi jxri .

(1‘81!) t‘n‘ne than ieifll‘"i"¥'it‘: 9; seti lcfi‘crl": whic't‘: to thaw 52e:".-‘-“.$: er:_;ii:§." -e

x v ; N ‘ _‘
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sen wno ream n5 {1 tree farm.

it is not the 1".LI‘-_C«C€: of‘ this t.‘3:e.<‘i_s to re": into tne IrI‘CVETE.

'\ . 1~ cw Q ~ ~ 7.7"“ ' " .- ‘7‘ .1 .s - ' —~ 1‘. ~ .~-- ‘

of“ fungi; fem tr ELY‘AfJI‘. ..cwc'xcr, tie i-rtmiexu is (1052 J.” rf.117-_Ir:‘:}
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8 std“ of fete} a: SLJLI IQI'H. men,” 1er e~ revn- -t".~., _ ..u 6, 3-8be

fireot extent the interest of‘ the son er? his wife in the f‘arrr: e.

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about Wizlfi'fl" a flace Ci" their (“1‘3“). 7? SC="‘t3tllif‘1"' ‘1‘1s-;$. not 9.]1‘

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£113. 7; as to try? f.._'.-.\_'-.re ownershit‘ o f' the Yard if 391'?! . I ‘7" 5 cc er

1‘84“; frene’ét cannot 'e re-::;_r_-;1+?‘ u.“ .1":

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transit?!“ {f‘l‘z’t‘fl 1943114091 the ‘Oiit‘laufft l) 3“ 5:39.. e ~v‘~3°w;:: t‘ d, "5'

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‘1

-';Tr_11'1':i:'»1.?*'c. liabilio‘y: were a {m 1~1z<1<111911ig (Wists, 9.1 01911—-

 

 

truat race F; eitflur :9rt1er in "afiflncfiinn With tha usual

L'

. L.‘ a _1,‘ n q ‘.. - ‘ - N -- . n‘ ;., _
onaruhznm o: imté IrLT DuSJFBEH 113/ SUALHCt the flwfifi3nb of
+1-3 'Lhfi“ 7" " '1'» ("'1 )H n ....r-, #14". " " 1]. “ 'f-1'Tt""""'5'
v 1’: O" 11- D'ilr '5’;sz \-o( .4.“ 'QL t"]e QM} J1.) ax‘ \‘V6 9.“ ’ la, 1.11"..I.C‘.l..
4- .~ ,1 ..L- . L . ‘,. - -L.

b? “A? 98” ”Ceihfid «' 91:“ a conurac,.
I U ' C O I
The ItnllrtzzhsrJ oon+ranf ,119111t; a? rnrfaavs :n a

fafnnr and Ram farm buglflers awreewent, however, 19 not

as serious as it mi~ht first a rear. The Father 99% can

should be able to bet 913.? wa.l and have faifih in tha
hnnczfy mu? interrib; of each otqer bvfore entering into

a partner9hip agreement.
The c1939 wnrkiny relatinnshlj makes it posfiikle +0

ontrol fifiHQCGS in a fairly sajfi runner, 933 +0 qCfiuaifi‘

, . .. ..
wavedaflzs Wlfh terr= of rue “firtnersn1p ooqtraat

l
A.

.. - . - n ,. ,.,- ‘ - ‘ ., ' -. --,- .‘
l"JPT?11&i‘-e OJ. 8.11:; 111‘ L“) Item 0.! Bit-175‘." .' $1531.; 7"}; b

V

11‘
3.1.
..‘1
'4
I)
I

tigated rather easily. tuch factors combine to m1n1m111

-‘ ‘ a _ .q‘: .—4.. o ‘ a .1 - _.,
b1e flm1gers 01 un11¢1teg enduract 11901111v 1n a Lutuwr

and SCV1 fur? :nurtqorsfiif.

r : /. -‘5:L. ‘11:- ‘:.1:‘;.- -, -._. til-‘t‘T c
51153-21 “1+ n "it'll. 0?“ iv
a". 11’ {t r ‘10 1‘1 ’5‘ ".'D".'”' 1* {:07} 2,1,
DU?LJCSS of a farm "axtnor~

‘1 . V‘ \ .7
‘91‘. 1016 tnrfis

n VPW‘QN i'~:1”. r:‘ f“ ’1 D”
. ‘ V . ’ ‘1 v ‘ ’ '
1 .~ (1 '— I. . \ Cl"! . \ "1 m+ if.” j S I i .—
. 4- unh ‘fi'1 Io vs 1- ".~..- 1 '1-'
K r‘ I. A L) '9“ ) a; ‘ 31 .1"; 1.1 t r):‘ t ""1

may he insurwl

9‘9119*, m1fl the fort linb‘lit; of the jerf19rs re‘ 61.

'nfi' 199:0 a'rn9“ents ifiqlude a 5isclaimer op the exisi9”¢9
ofaagart1m“shlg Althou h 50mg an M1 9 1ave 'ixou Nn1mh+ in 310H 1%
egv~~g~ = ~73, {1.0 (“w-recs: 1:14:73 '1“ T n n: firm-3+. "'1 .(‘f 51.72% Q8 ‘111‘1‘3 7:“!

.e that such

“rcvi

qa ef?vrt to avoii the of

.4.

reali30 P Benn createa

[lot

'3

. I l q o a o
Nltfi n “nr319r5419 no ran 1t 13

‘
U311

to

C
If“

for “the

$01]

Fflfin”inal

of the rross

fro: +he 81t1.0 farm 0‘4 still 19 cons
m1 arrangement, the son must sac: ifi

AS the fafiher gets older and M

lannlor‘-+91n1t relanonsnw1 mij t be

be necessary
of the farm to the son.
Even under an emplq;

bound by the act9 of the em.

scope of the business. The

assufie the
V ‘_'1_
Prnhfipif

is claarlf

'5!"

O
3. {16:0 "1:?!

V
worxai

'er-employee relation
10"ee on contracts enterud

$353 is true of tort liability.

9 fins; xi"ht

"C,‘.i-" ) f.‘r.‘ -. Y") Q '7‘ T, ’1' ,- r‘ ,,,.L..' 'J"
8. LR5£ 'i.(_'r‘3.1.-‘ ’v’vk . p . ..1. ' .‘

l .

.‘
\

11-

litles connectefi

.

.a‘

’J

b99751 {311‘ 1*.“e'1 to +29; +3

V
in snwe other natn~or£. In
”19.533 50?“? OF +1163 131.79.:1i'A1-jrars

to WC

‘
O

rcrgonsibili.
frnn cerfam arm a

1n

*5-0

idered an eng. 99

O 5..

n . , I ‘ _
the management.

shes to rei;ire, some tgje of

out. Laue «r, it will

for the father to turn over comfletely the nunagemnt

A.” engl *0”

‘ ', fl; . ‘ x..- -0 , ,.-.‘ ,..., .,,:.I - ..' . ..' '.
or .1: 1-1¢-,-1 its. t.:1 i.r J. 1,; :11 e . 11.-~> Cufllflljobed.1wfiitij azfi,1;~ in

. .. 0" -.p .. .-
tie inual aouzre 01 his so l”‘flfl-t.

solar sore ty'es f lease, Wiere toe landliri retains sons

0

managerial authority, the landlord ma; Le liable for torts cona‘tted
by the tenant as afeat under authorit; of‘tie landlord.

The law {rovides for a "limited" pewtrlership whic‘rl lixrtits lia-

' ..J
3.:
.n

tilit; to the fimoufi: of capital invested by the limited partner r;
his share of‘the Profits. The "limited" partner takes no active part

in the business. This tgje of arranfemeat appears to offer littla to

RU

a salution of the faflier and son partnership problem.

The fbrwation of a fartheraiip is a contract betweci two or
more yarties. The partnership contract is equally valid‘whether W“lt-
ten or oral. The first elemeit of any contract is the necessitg that
all parties be competent or capable ofzioing business. A person under
21 years of age camiot bind himself on a contract evcept for necessi-
.ties. Lhen.you deal with minors, there is danger of‘y.ur side of the
contract being enforced, without your being able to enforce his part
of the contract.

Althouji real legal responsibilities do exist wh n father and
son farm together, the problem is probably much less serious than
‘with non-related parties. A recent survey among county agricultural
agents in Hichigan disclosed only one case where a lawsuit resulted
from an act of a son in partnershigrwith his father. Details on this
case were not available. It is not certain that this sait was the
result of the son being in partnership or whether the father woul‘
have been sxed although no Iartnership existed.

In View of the limited possibility of parties in a father and

son farm partnership suffering loss through the unlimited liability

e.;=.~..u.:iec1 it). a pxrtnersbip, Ham: fathers. will undoubted .1" continue to

take their sons into hus 1:19 55 wi t‘q t’nem. The many advmltages of work-

ing together under a gnr‘tnership type of operating: agrearrent appear
to be worth taking some risk. However, adequate insurance and care

in avoiding, unnecessary risk should 09 a part of every arrangement.

r-3

his is especially true where father and son are operating toEether

under any agreemnt which might be interpreted to be a farm partner-

Shlpo

SUEHAEK

Interest in father and son farm Operating agreements appear to
be increasing. Increased mechmiization has resulted in larger xarms
and with them have come the problems of large investments and labor
requirements. Father and son farm Operating agreements make it pos-
sible to stare these large investments, and provide dependable labor
to carry on.the farm Operations.

Young men are able to Operate highly mechanized units with
high debt paying capacity, which helps them become established in
farming more quickly. Older men are able to continue their farm op-
erations on a high level of’efficiency fer a number of‘years beyond
the peak of their productive lives on the farm.

The groundwork for successful farm business operating agree-
ments is laid in early years through 4-H Club and P.F.A. or similar
activities. They serve a definite period in the lives of father and
son. Later, they should be replaced by an arrangerent in which the
son takes over the operation and ownership of the farm.

In this thesis, essentials of father and son farm business op-
erating agreements are reviewed and the characteristics of success-
ful father and son farxxpartnershins on 52 south central hichigan farms
discussed.

Information on this subject obtained from other states pointed
out the nationwide scope of the problem. There were many features of
Operating agreements presented by the different states which were very
similar. The hichigwi agreement developed by Profess r E. B. Hill
provides as desirable a single arrangeuent as any presented. It is

very flexible and may be used to meet the needs of most situations.

65

As a scans of stud;ing the characteristics of successfully
operated father and son farm farthershiys, county a ricultural agents
were requested to submit a list of fathers and sons who were, in their
estination, working together successfully. About 75 of these farms
were visited. It was discovered in some instances that no operating
agreenent existed. Immever, on 52 farms a questionnaire was com-
pleted and the characteristics of this group of more successful farm
Operating agreenerms studied.

On these farms, fathers averaged 53 years and the sons 21 when
tiny began a definite agreement. They had been working toEether under
this agreement an ave‘age of 6 years. Thirty-two percent of the sons
were only sons, 24 percent oldest sons, 30 percent younfest sons, and
14 percent were between the oldest and youngest son.

General farming predominated, with major emphasis on the dairy
enterprise on nest farms.

1

On 95 percent of the farms, the original holding nas been in
the family more than 20 years. Four farms had been in the family
more than.lCO years.

Fathers and sons and their families showed real interest in
farming on most of these farms. City bred wives of the sons indica-
ted slightly greater interest in the farm than the farm reared wives.

Seoarate housing‘was available in 95 percent of the cases where
sons were married. The other 5 percent'were situations where a widow-
ed father made his home with the son and his wife. In all casas, some
provision was being considered fer separate housing for the single son
when he married.

Fatlensand sons and their families, with few exceptions, were

able to worL together as a team. They agreed veri‘well on the kind

and arrourt 01‘ mamirzerjs needed: and an the type of farming“ followed.

Feverltg-oma gercezt of t}.e fathers and 6" percent of the some
. ‘licated that they felt they were doinrf better farmL {3' together than
they wou' d be able to clo farming“ inei‘n'ac‘mallj'. Only 2 perceet cf the
sons and none of‘ tue fathers expressed a feeling: that they could do
tetter operating individually.

ievent;;-seven percent of the fathers felt that having a your}:
ran in the business helped yreatl; in keeping; them stimulated and
leaking into the future. Fxlimty-eiéht percent of the sons felt that
it was, an advazmage to them to be able to work with their fathers.

“firm-thirds of the fatzers felt that their sons could rmnasje
the farm very well alone. On 615 percent of the farms, fathers rated

their son's a‘r-ility‘ to na11e_;_-e the farm the same as the sons rated

{0

their own ability. On 2 percent, fathers rated their sens higher
than the sons rated fixer-selves. In only one instance a son rate-d his
aF-ii‘jty over the rat-inf given him 1:: his father.

Farms in the study averaged larger in $5.70, than the 9.1'01'7'f'e of
farm account‘rm farms in fife of‘ farming Area 5. Tilla'rvle acres fer
man were at out the same for one, two, and three son {rt-.rtrxc:z's.‘rai-3_‘s,
but averaged 5 acres {81‘ Iran lower than the avert-age of Arca 5 farms
due to the larijer nvrier of men in fife farthershif. The farms 111
this stir}; 0331‘de 4.6 pure (liar; COWS, 2.4 more S09v3, and {:1 more
hens. per farm them farms in Alma 5.

‘ n
o

AlthOLLng farzixs in t’flfi stud; were fairy Well mechanized on
the average, there was considerable r 'l’ff! in the de"ree of mechaniza-
ti on from farm to farm.

Good crop "ields and high production per unit 0‘.‘ lirostney wag

,

cow-fin on the father and son orverated farm-.8. labor eif'iCi‘l‘T’l‘Cr' 9-17“

vh”ed L0 ha averufe or a eve, axfi was chfiaiued as a rcault 0? large
acret e and i1+€;sivn livnatnwk frafluctiOfi.

[fist snrs fariicigwfed in tke entire fqvfl 338 mass. wthgrx
were v»r;iut ii thrt directi2n.

In 9: art one-h 1? of the canes sflflied, the general plan n¢e¢
was tzat of fayiw; all farm operatiu; ex;enses, and than dividiir
tna renaming incorre cet'a en the. fibEncr and son. thez's frag ently
as suxed tne ex:e use for fi”m improvements and taxes. In one instanae,
a father and two sons operated as co-teaants and cash rented a farm
from the {Exinr3 one from flua olier son, and a third from a neigh%or.
Tha re“aining cas,s were varied, ¥ut in.xmst instances the fafiier and
con each paid certain erenses or a share of then, and received all
or a share of inco.e from incivimial enter'ri 535.

Although wrut en a; racn2-nts are considered essential to the
.uciess of a father and son iarm norm61rshii agreement, El 39rceut of
the cases st died had only oral agreefents. Tiny of these were ra
loosely fbrxed.and were wrebably one of the'weazest elemonts of fhe
working arrax3e4.nts studied.

Few fafiiers and sons feel 08 able of dr a‘riiig up a farm business
agreerent. Tailor-made agreements are neceSsary for each individual
situation. There is a real mead for someone to help fafher and son
think their prcblem tfircufh, and then put in'writinfi the f;“e of agree—
ment which nest rents L1eir na.d

She son’s future on the farm shouli be nonsifiered at the tifie
an 0282. ting agree: nut is confiernnlatefi. Fathar's infienfions are 59n-
erall; very good, but he frequently fails to put ant-ars in writing,

aid lea"es the son unprotected and with a feelinr of insecuritf.

Q U

Alt -0u h the liaZJili tv imposed on memnbrs of a partnerSni 3

‘5" the Tiiimfv-Jr'n Z‘s-qz‘tners‘uij [Lot is f“‘1‘0"-‘:9.i31‘2" not as serious ‘A'licre fau-
ther and son farm together aS'with straarers, it is real agd should
be considered by both father and son plannin: to farm together.
Esther and son fmvnlmxdrmss ogorating afreeocnts offer real
advantajes to fathers and sons under conditions which are favorable
to their development. It should not be assumed, however, that they
will work under all conditions where a father and son are on a farm
together. If most of the conditions which have been shown to be
characteristic of miccessful father and son farm Operating agreements
camiot be met, it is doubtful if such an arrangement will be success-
ful. It is also doubtfhl‘whethcr a father who is much past 55 years
of age should enter a partnership with his son. The arrangereut will
to Sheri-lived at best, due to the father's advanced bears. The
.ge between father and son which may exist with a father

'8 is an additional hazard which must be overcox .

. A a .. ._ -
- vo".“r:' 9 7 ‘
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