For almost all cotton farms in the area, the standard share-crop agreement is for the landowner to take a 1/4 share of the crop. He also shares 1/4 of the fertilizer costs. If the farm is irrigated, the landowner bears responsibility for all repairs to the irrigation wells. (Drip Irrigation Farms generally command a higher share.)
got a question about cotton farm in Terry county. Am a out-of-state owner and need information of what is a fair share-crop agreement.
thanks JW, that’s what we have going now, no water. Just that we do not receive regular reports on crop nor cost of fert or seed. Get a bill and report from the gin and that’s about it.
Still no oil, had a agreement about two years ago, I don’t have the record with me, but land man paid nearly $50k for 640 acres, standard royalty. Guess that was an average price, don’t know for sure.
oh,ok. I live in the middle of a corn field, (not mine) surrounded by farmers outside a small Ohio village, and when I speak to one about subsidies they usually speak of planting corn and nothing else except green manure.
Yes, the Texas land I mentioned was purchased by two Ashton brothers, Ohio farmers, in 1892 in hopes of a railroad running through.
…right, the insurance price subsidized, I get it.
Usually there are dozens of mineral owners in a section in this part of West Texas. Through the generations, people have died, left it to their kids, and so on for 2 or 3 generations. However, I don’t honestly know what it would be worth to have a FULL section of minerals owned by one family. Maybe a landman on this forum could comment. You’re not going to improve on the 25% royalty. You might get them to drop the 2 year option, or increase the bonus money some, but I honestly don’t know.
Thanks…I just meant that the PRICE of the insurance is subsidized, and therefore it is a good deal to purchase it (which you have already done)…
A whole section of farmland and minerals is a rare commodity these days…usually at least the minerals are divided up six ways from Sunday. It should be a good thing to keep in the family. Potentially, those minerals could really pay off within the next few years.
JW - appreciate your posts.
Question — during min. lease negotiations, how much ‘extra’ would you think it is worth if we have a full section, and own both surface and all mineral rights? For example, if their offer is $500/nma Bonus, 25% royalty, 3/2, and there are active wells nearby, how much of an advantage does having the full section give us?
Thank you, JW.
Has anyone in Terry Co. been getting offers to buy your land?
I have received several letters and phone calls that someone is interested in buying land.
I know this forum is for minerals, but a quick answer for Thomas Ashton about gov’t. cotton subsidies. In addition to the crop insurance, the USDA/FSA will make cotton disaster payments for the 2011 crop year - but won’t pay until 2013, and we don’t know the amount yet.
I haven’t received any inquiries about BUYing land, just leasing mineral rights.
yeah, I know the feeling. I’m still trying to find a map of Terry Co. that shows the sections and blocks numbers.
Thank You Paige, I didn’t know about 2013 wait.
Yes, several landmen have offered to buy the land, matter-of-fact, one of the landmen still has another year on our 3 year agreement of mineral rights and such.
Thanks Guy’s (and Gal) for the info.
I know of at least 1 company that completed a well a couple months ago. However, the RCC does not yet show any production. Frankly, I would be thrilled with an initial production rate of 150-200 bbls/day per well. I hope the RCC will show some solid numbers next month.
I live in Austin, TX and have relatives still in Terry County so they keep me fairly informed. Last I heard there have been wells drilled in the area SW of Brownfield and several permitted west of SH 287 about 5 miles and about midway between Meadow and Brownfield. A couple of locations in this area are being built (meaning that the proposed well location is being prepared for a drilling rig). However, I cannot get any information as to the results of recent drilling - traditionally, the exploration companies are VERY closed mouth and do not want information to spread, particularly if completed wells are commercially viable. Leasing activity continues fairly strong and I think we should know the quality of the completed wells by mid-year 2012 hopefully.
I get offers from various companies wanting to buy my mineral rights but steadfastly refused to even talk to them. I figure that they might be worth something some day and my ancestors certainly thought enought about them to keep them and pass on to me.
Thomas, if you have your tract descriptions, then go to http://www.rrc.state.tx.us/data/online/gis/index.php#,
click on RRC’s Public GIS Map Viewer. In the blue area on the right, in the middle for Map Tools, choose “Identify Wells” from the dropdown menu. Below that choose the county from that dropdown menu. Once you see Brownfield and Terry County, keep clicking ‘zoom in’ and moving directionally using the arrows at the top until you get to the survey and block you need. As you get closer-in, you’ll see the section numbers in red in the top right-hand corner. Click on ‘legend’ in the top right quarter of blue area to see what the symbols mean. The 5-digit number next to a green circle (well) is the lease ID number.
There’s a lot of information you can find on the RRC website - this should explain: http://gis2.rrc.state.tx.us/public/help/search.html#surveySearch
Thank you Paige. The link is a big help. Your instructions are most helpful too.
To E. Dubose , the drilling on 62 block4x is on my mineral rights lane , I share a 80 acre pool of land with my family , its the OLD Covington farm , we didnt sign the lease papers but 4 mths ago , any news or input is appreciated.
We recieved an offer to purchase our mineral rights in Terry County a few months back. Our family isnt interested in selling. Imagine someone is on to something.