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