One of the most dynamic periods in the history of modern agriculture has led farm operators to rapidly adopt new technologies in seed genetics and GPS-guidance systems to increase production and expand their operations. The increasing world demand for food, fuel and fiber has driven commodities prices, particularly for feed grains and oilseeds, to all-time highs.
Our Land Management Services are designed for owners who want to ensure that the critical elements of their farm operation are overseen and managed by experienced professionals. We work with each landowner to develop both a business plan and budget for their farm that addresses the need for current income and long-term land value appreciation, as well as the critical issues of soil conservation and farm sustainability.
The key component of our system is the implementation of a business plan through a transparent and equitable relationship with the farm operator. We use the operator's GPS-based soil tests, application maps of fertilizer and chemicals, and harvest yield maps to evaluate production practices and opportunities to increase returns to both the landowner and the farm operator through increased production.
Peoples Company encourages landowners and operators to talk openly of crop yields during farm lease discussions. An accurate assessment of the potential crop revenue is generally our starting point for the farm lease negotiation, which also includes a projection of crop production expenses. We discuss the risks and rewards of each of our preferred farm leases, and we recommend the lease that best meets the landowner's risk tolerance.
We recognize that owners may have specific needs, and we tailor our program and services to meet those needs. Here are the essential services we offer our clients to ensure the best return on investment for landowners across the Midwest.
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.
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.
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.
The landowner leases the use of their land to a farm operator for a fixed cash payment.
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