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Farm and Ranch Co.
What Farm Management Can Do For You

Our job as professional farm manager is to serve as an agent for you, the farm owner. The farm manager's reward is based upon his ability to generate maximum income for his client while preserving the client’s asset.

A professional farm manager can help you in numerous ways. Two of the many reasons for using a farm manager are: 1) You want to obtain the maximum rate of return on your farm, yet you don't have the expertise (or perhaps the time) to supervise the operation; or 2) When a farm owner dies, the farm becomes an asset of the estate. It is vital that the farm is maintained and its value increased for the family during estate administration, as well as in the future.
 
To accomplish these goals and others you may have set for your farm, Farm and Ranch Co. will provide numerous services. They include, but are not limited to the following:

*  Consult with and assist you in identifying feasible objectives.  We will develop     a detailed program for the farm that can reasonably achieve the objectives.

*  Select the most capable farm operator available, which may be the present     tenant.

*  Consult and make recommendations to the operator and to the owner     concerning cropping systems, soil fertility programs,  and use of herbicides,     pesticides, harvesting, storage and marketing of crops.  

*  Preparing accurate and complete reports of current progress, results of the     operation, condition of improvements, and submitting them to the owner as     often as necessary.  

*  Establish crop rental rates, both crop-share and cash, based upon current     market conditions.

*  Provide information and help in estate, income, real property and rental     property tax planning and management.

*  Keep the farm in compliance with conservation plans and Environmental     Protection Agency Standard.

*  Keep track of government farm programs to enhance the farm's potential net     income.

What type of business agreement does a farm owner establish with a professional farm manager?  

The contract between the farm owner and the farm management firm outlines the professional farm manager’s responsibilities. In turn, the lease agreement with the tenant specifies the tenant's responsibilities.

The three most common leases are: crop share, direct management and cash rent. Under a crop share lease, the owner and tenant share expenses and income in a pre-arranged ratio (a 50/50 arrangement is common). The farm manager selects or retains the tenant and makes the normal production, purchase and marketing decisions for the owner. Crop share leases work best for farm owners who can stand weather and price risks.

With direct management, the owner pays all expenses and receives all income. The farm manager hires the farm work done on a custom basis and the manager makes production, purchase and marketing decisions.

When a farm is cash rented, the farm manager selects the tenant, but makes no purchasing or marketing decisions. However, it is common for the farm manager to make specifications in the lease regarding crop rotations, fertility levels and tillage practices which the renter must follow. Cash rent leases work best for those owners who need a guaranteed return from the farm.

 

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