Peoples Company > Land Management Services

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.

PEOPLES COMPANY PREFERRED FARM LEASES

 

 

1. 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.

2. 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.

3. 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.

4. Cash Lease

The landowner leases the use of their land to a farm operator for a fixed cash payment.

PEOPLES COMPANY LAND MANAGEMENT SERVICES

General Services:

• Open a real estate trust account to deposit rent payments and pay Landowner distributions
  
• Review the RE 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

Production Records:

• 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

Land Owner Reports:

• 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

Land Stewardship:

• 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, please contact our office at 855-800-LAND.