by Mark Bingaman
Considering investing in farmland or ranch land but don’t wish to actually manage the property day-to-day?
Maybe you just love the idea of buying land in Wisconsin, owning a ranch in Idaho or a farm in Pennsylvania, but you live in New Jersey and want someone else to handle the business side of things.
Or perhaps you’re an active farmer or rancher (or plan to be) but need or want assistance with various segments of the business.
Farm management companies can act as hands-on, daily operators of a farm or ranch or, alternatively, maintain a consultant-type of relationship where the landowner picks and chooses (Ala-carte) from an array of services.
In most cases, the company will appoint a farm manager (hired with your approval) and that manager and the company oversee the entire operation including things like evaluating lease alternatives, negotiating lease terms, farm visits, overseeing building or land improvements, supervising input purchases and crop marketing, reviewing and paying expenses, managing all aspects of insurance and participation in government farm programs, annual budgets, crop progress reports, and financial reports.
Additional services may include appraisals, care and conservation of the land and environment, profitable crop marketing, real estate sales and auctions, forest resource management, oil and gas management, landowner workshops, and, for those who hope to pass on the land to their heirs (or people who have inherited farmland) farm succession planning.
If your new to the concept of professional farm management, you may be surprised to learn how encompassing and widespread these services can be. For example, as it concerns profitable crop marketing “A marketing plan is developed yearly and updated daily for each farm that is under our management. Specific sales goals are established by our grain marketing specialist and implemented by the local farm manager based on local conditions. The plan is designed to sell crops, under our control, in the top one-third of the yearly market range and avoid the bottom one-third of the market where 75% of the grain grown in the US is currently sold,” states the Farmers National Company, an Omaha-based professional farm management firm.
Common Questions Landowners and Farmers Ask Professional Farm Management Companies
Is the profit I get from my farm what it should be?
- What can I do to make my farm more profitable?
- Are my leasing terms up to date and fair?
- Am I getting enough for my cash rent?
- How much does my operator make off my farm?
- Should I have grain storage on my farm?
- Does it make sense for me to invest in an irrigation system?
- Are there other enterprises I should be doing on my farm?
- Are there other crops that should be grown on my farm?
- Who will oversee the tiling project on my farm?
- Who can I turn to for unbiased information about my farm?
Professional Farm Management Fees
The majority of professional farm management companies charge from five to ten percent of annual gross rent revenue or net proceeds. Of course, this will vary according to the range of services provided.
How to Find Farmland for Sale
Whether you’re a “city-slicker” intrigued by the idea in investing in farmland for sale or an established investor looking to diversify your real estate portfolio, plenty of solid, professional firms exist to help you manage your land after purchase. If you wish to sell your farmland, we’re happy to help you find the right buyer.
Yep, at LandHub.com, we’re loaded with land for sale that can help you fulfill your need to sell your land or land your dream.
Resource Link: American Society of Farm Managers & Rural Appraisers (ASFMRA)
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