Beesource Beekeeping Forums banner
1 - 20 of 21 Posts

·
Registered
Joined
·
298 Posts
Discussion Starter · #1 ·
Howdy,

First let me say thanks to those who can help me!!! :thumbsup:

I am in need of a simple contract(I can modify it to fit) to allow me to place behives on an owner's property for honey production. I will be doing this in Texas. I plan on making this an annual contract which can be renewed if both parties are interested.

Thanks again!!!!
 

·
Registered
Joined
·
296 Posts
I have never had any written contract for such matters. And we place bees on loads of people's property. So I can't help with this, except to tell you that most don't have any contracts.
 

·
Registered
Joined
·
2,095 Posts
I think you will find most landowners are not eager to sign any contract for their property. we have had hundreds of yards in three different states and never felt the need for a contract.
 

·
Registered
Joined
·
2,308 Posts
Is this part of the Texas tax deal, where "gentleman farms" get major property tax breaks if they support agriculture with a few bee hives?
 

·
Registered
Joined
·
298 Posts
Discussion Starter · #6 ·
Thanks all. DLS, there are some contracts there I can modify. NIce link!!!
BW10 & JWC, yes it is for the new Texas tax agricultural exemption laws. I need to have some protection and the land owner needs to show the tax man that there are hives of bees located there for some type of agricultural benefit. One hive is worth about 2 cows in tax discounts. Because there are no crops to pollinate, the hives will have to be for wax production, honey production, bee production, and/or queen production. A contract legitimizes the deal in the tax man's eyes. Here is an example I came across just today. A Client has a $75K tax bill for 7.5 acres of prime real estate of a metro area. The client is willing to pay me to put 10 or 12 hives up to reduce their tax expenses by 10s of thousands of dollars. I can charge a pretty penny for this service (putting the hives up and maintaining them) and also get the honey to sell!

YEEHAW. :shhhh:
 

·
Registered
Joined
·
9,340 Posts
I do not have a written contract on any of my yards, but I do have a verbal contact which I renew every year with a tithe of honey, min payment of 1 container per year.
I make a point to talk directly to each of my land lords.

If your looking for liability coverage, talk to your farm insurance provider
 

·
Registered
Joined
·
34,542 Posts
Howdy,

First let me say thanks to those who can help me!!! :thumbsup:

I am in need of a simple contract(I can modify it to fit) to allow me to place behives on an owner's property for honey production. I will be doing this in Texas. I plan on making this an annual contract which can be renewed if both parties are interested.

Thanks again!!!!
Why? Did the landowner request one? If you feel you need a written land use agreement then write what you want in it. I have been keeping bees on other people's property for 30 or 40 years and have never hand any more than a handshake agreement.
 

·
Registered
Joined
·
34,542 Posts
Thanks all. DLS, there are some contracts there I can modify. NIce link!!!
BW10 & JWC, yes it is for the new Texas tax agricultural exemption laws. I need to have some protection and the land owner needs to show the tax man that there are hives of bees located there for some type of agricultural benefit. One hive is worth about 2 cows in tax discounts. Because there are no crops to pollinate, the hives will have to be for wax production, honey production, bee production, and/or queen production. A contract legitimizes the deal in the tax man's eyes. Here is an example I came across just today. A Client has a $75K tax bill for 7.5 acres of prime real estate of a metro area. The client is willing to pay me to put 10 or 12 hives up to reduce their tax expenses by 10s of thousands of dollars. I can charge a pretty penny for this service (putting the hives up and maintaining them) and also get the honey to sell!

YEEHAW. :shhhh:
Which income you will declare annually, of course.
Doesn't Texas have an example you should be using?
 

·
Registered
Joined
·
4,144 Posts
It may be hard for some to believe but there are yard agreements in writing. I have 4 of them.
Chew on this too, 3 of those 4 require a non disclosure agreement.
1 of the 4 needs the written agreement for Ag exemption along with one from the shepard for the same purpose.
My other yards are handshake agreements.
 

·
Registered
Joined
·
4,694 Posts
163 years and never used or needed a written contract. We would be asked to leave if we requested one. What's your handshake worth?

Crazy Roland
 

·
Registered
Joined
·
298 Posts
Discussion Starter · #12 ·
Well thank you for your input. Wow. :scratch: I had no idea any of you would part with thousands of your dollars just on a hand shake!!! Really? Do you expect say, an older lady who has been crapped on all her life, to just hand me thousands of dollars without a contract? :s I am sorry, but I do not live in the land of OZ and I bet you don't either. Did you sign a contract on the financing of your last vehicle or was a hand shake good enough for the finance company? :rolleyes:

I am just poking fun here at you, but clients will eagerly pay large sums to reduce their taxes by say 40% to 50%. Example: Pay me $8000 or so (for say 10 to 12 hives) to reduce their taxes say $40K to $50K. Would you want a contract? What if she or someone else, on purpose or accidently, poisons the hives? Would you want a contract. What if someone steals my hives? Would you want a contract?

Come on man... :gh:
 

·
Registered
Joined
·
34,542 Posts
Well thank you for your input. Wow. :scratch: I had no idea any of you would part with thousands of your dollars just on a hand shake!!! Really? Do you expect say, an older lady who has been crapped on all her life, to just hand me thousands of dollars without a contract? :s I am sorry, but I do not live in the land of OZ and I bet you don't either. Did you sign a contract on the financing of your last vehicle or was a hand shake good enough for the finance company? :rolleyes:

I am just poking fun here at you, but clients will eagerly pay large sums to reduce their taxes by say 40% to 50%. Example: Pay me $8000 or so (for say 10 to 12 hives) to reduce their taxes say $40K to $50K. Would you want a contract? What if she or someone else, on purpose or accidently, poisons the hives? Would you want a contract. What if someone steals my hives? Would you want a contract?

Come on man... :gh:
I believe I see why you asked the original question and I think you have gotten your answer. None of the rest of us are in your situation, so we don't really have any advice of value.

It looks to me as though you are going into business with certain people in order for them to get there taxes lowered. In effect, it seems to me, you are renting them your hives for tax avoidance purposes. Which appears to be okay with the State of Texas. Are you getting a 1099? Or any other sort of documentation to supply along with your Income Taxes when you file? Are you submitting a Schedule C or Schedule F (Profit or Loss from Farming)?

How much are your clients paying you for your service? Is the example you wrote of the real thing? Are you getting paid $8,000.00 for 10 or 12 hives? Is this a rental or a lease or a sale of the hives to the landowner?

In your example you ask whether we would want a contract. In response, I say, what do you want the contract to protect you from? If it's a concern to you, then, yeah, make a contract. Use some of that income to pay a Lawyer to write it up for you.

Your reason for putting bees on someone else's property is different from most.
 

·
Registered
Joined
·
2,308 Posts
The Texas Ag Exemption law states the property must be in Ag production for 5 of the previous 7 years. It also states that if the property leaves ag production, a 5 year roll back of the forgiven taxes (subject to a 7% per year penalty) is imposed.

Renting some hives for a year doesn't qualify for the tax break.

Our civic society is supported by our property taxes. They pay for roads, schools, hospitals, fire departments and police. The wealthy may feel they are getting a "deal" by evading taxes, but in truth they are hollowing out the core of our society. Not paying your share of taxes leaves behind an anarchistic free-for-all where the children are uneducated, the roads are unsafe, fire protection is a garden hose, and public safety is Matt Dillon.
 

·
Registered
Joined
·
34,542 Posts
:thumbsup:

A person in Westchester Co., NY got an Agricultural Exemption on Property Taxes for having beehives on a 10 acre piece of land mostly occupied by houses and garages and other buildings. I can't imagine what was paid in Lawyers fees and Court Costs to save the monies save from Taxes. But that's what the wealthy can afford to do with their wealth. And probably feel obligated to do. A million saved is a million earn, after all.
 

·
Registered
Joined
·
4,694 Posts
In the OP's first post:

.....to allow me to place behives on an owner's property for honey production.

When the "truth was out', this does not appear to be the case, but rather selling tax credits. I apologize for not providing a good answer to your actual question.


Crazy Roland
 

·
Registered
Joined
·
9,340 Posts
You are getting paid $8000 for a few pallets of hives to help reduce the land owners property tax??
Yikes
Yes get something written up
 

·
Registered
Joined
·
298 Posts
Discussion Starter · #20 ·
Whoa. I'm sorry about the delay as I now have real Internet speeds with a cable company and no longer have a throttled-back(choked) satellite provided Internet service.

Yes, the going rate for this service is $800 per hive on year one and 1/2 that price for each hive thereafter. If the property already had Ag exemptions in place, then there is no delay in this Exemption. But, new Ag exemptions for bees must have 5 of 7 years of beehives that are used for producing agricultural products (honey,beeswax, etc.). So year (1) starts and then goes forward so the Bee Tax Ag Exemption can begin in year 6 and onward. This is new law for Ag Bee Exemption is for a properties that are 6 acres minimum up to 20 acres in size. Besides the state regs, there are of course some county & city rules and regs also.

Around here there is no concern for a loss of tax revenues. Let me give you a real example(which is going on everywhere in the Austin, Texas metro area). A property of 500 acres has been under an Ag exemption for years holding goats and cattle to accomplish the requirement for an Ag exemption. Then,.... this property is divided into a subdivision of 1 acre traces and is holding homes of $500k minimum on each acre and more homes are built daily. THERE IS NO WAY THE PREVIOUS REVENUE FROM THE "RANCH OF GOATS AND CATTLE" MATCHES THE NEW TAX REVENUES OF THESE HOMES!!!!! The new homes exceed the previous tax values, per acre, multiple times!!!

Without this tax break(the Bee Ag Exemption), this lady could pay more in taxes(for her 7 acres) over the next 10, or so years than she could sell the property for!! Her current land tax bill is for $80K per year!!! I think she wants my bees!!!

I hope this helps explain it all. And yes, a pollination contract is currently being modified and also the financial set-up for my bee business. It is no longer "just a hobby" but a business that will employ 1 or 2 more people this year to help me.
:)
 
1 - 20 of 21 Posts
Top