The key component of our land management system is the implementation of a business plan through a transparent and equitable relationship with the farm operator. We use GPS-based soil tests, fertilizer and chemical application maps, and harvest yield maps. These tools are used to evaluate production practices and opportunities to increase returns to both the landowner and the farm operator through increased production. Our land managers handle the negotiation of an equitable lease, management of the assets for return and appreciation, reporting of results and, when appropriate, planning of an exit strategy.
An accurate assessment of the potential crop revenue is generally our starting point for the farm lease negotiation. Peoples Company uses a variety of farm leases based on the risk tolerance and return goals of the landowner. Our team of Land Management Services professionals is experienced in the facilitation of custom farming, crop share and cash leases. We will present and discuss the risks and rewards of each.
PEOPLES COMPANY PREFERRED FARM LEASES
- Custom Farming
The landowner, typically with the assistance of a farm manager, pays all of the crop expenses and receives all of the crop revenue. A local operator is hired to plant and harvest the crop for a flat fee per acre.
- Modified Crop Share Leases
In a 75-25 crop share lease, the landowner pays all of the crop input expenses and receives 75% of the crop revenue. The farm operator receives 25% of the crop revenue for contributions of labor and machinery.
- Flexible Cash Lease
The landowner receives a guaranteed cash rent payment, plus a cash bonus equal to a percentage of the crop revenue (30-40%) when gross revenue exceeds a predetermined base revenue.
- Cash Lease
The landowner leases the use of their land to a farm operator for a fixed cash payment.
Peoples Company recognizes that owners may have specific needs, and we tailor our Land Management Services to meet those needs while ensuring the best return on investment for landowners across the Midwest.
PEOPLES COMPANY LAND MANAGEMENT SERVICES
- Open a real estate trust account to deposit rent payments and pay landowner distributions
- Review real estate tax assessments and pay the property taxes when due
- Review and maintain adequate property, liability and crop insurance coverage
- Obtain a UCC lien search on the farm operator and perfect the owner's UCC lien on the operator
- Approve and pay bills in accordance with the owner approved management plan
- Prepare 1099 reports at year-end
- Manage cash revenue per the owner's income tax-planning objectives
- Increase land value by maximizing crop yields and by enhancing conservation values
- Verify crop yields with the operator
- Obtain a soil test of the tillable crop acres
- Maintain a record of the operator's fertilizer, chemical and manure applications
- Utilize outside services as needed for grain marketing and risk management
- Business plan and budget
- Aerial farm picture and crop narrative
- Report from on-farm visit with operator and farm lease recommendations
- Farm production report
- Quarterly financial reports
Farm Service Agency:
- Farm program signup – DCP and ACRE
- Certify planted acres and CRP acres
- Monitor operator's compliance with the conservation plan and CRP contract
Farm Operator Relations:
- Maintain open communication on desired production and conservation practices
- Review lease terms and negotiate new lease terms as desired by the owner
- Embrace conservation practices throughout tillable and non-tillable acres
- Minimize soil erosion in all farming operations
- Evaluate the application of new conservation practices and explore options for implementation and funding
- Monitor and maintain records for conservation program compliance
To learn more about our approach to Land Management Services, or to request a written proposal for your farm, email us at or call 855-800-5263 (LAND).