Farm and Ranch Land Management
Additionally, our management fee arrangements are flexible and can be customized to meet client needs. Management fees can either be based on gross farm sales or net operating profit, we, in effect, share the risk of making the farm profitable for both the land owner and the tenant.
Land owners receive monthly reports. All revenue received is placed in a trust account. Invoices, such as property taxes and any other expense associated with the farm, are paid from this account.
We believe that our agricultural experience makes the difference in our farm management service…a difference that shows up on the client’s bottom line.
Cash Rent Lease:
This lease specifies a fixed number of bushels of a particular commodity to be delivered to a specified elevator by a certain date without cost to the owner. The number of bushels is determined by negotiation, but in many cases is approximately one-third of normal production. This allows the owner to know exactly how many bushels he will receive. He will be able to market the grain on his own.
Net Share Lease:
Crop Share Lease:
Within this arrangement, the owner pays 100% of the direct input costs plus contracts for a custom operation. With this type of lease the operator receives either a fixed amount per operation or per acre. This allows the owner to have complete control over the entire crop but with that control comes the risk.
This type of lease is a combination of cash rent and either crop share or bushel lease. This type of lease allows for a base guarantee income to the owner and a bonus for high yields or high commodity prices. The lease has become more popular in the past 5-7 years due to the high commodity prices we have experienced during that time.
Supervising the Farm Program and Carrying Out The Plan of Operation
Our farm manager supervises all details that are farm land related. This includes leasing, planning crop rotation, purchasing supplies, marketing the crops and supervising land improvement projects.
Visits to the farm are made sensibly. You will receive timely updated forms that inform you about the happenings on each farm every season.