For the sixth year in a row, farm operators are feeling the squeeze of low grain prices and high input costs. Land grant universities, agricultural economists and ag lenders are all calling for lower costs of production. What does this mean for landowners? Land is the most expensive input for farmers. Before finalizing your lease for 2020 you need to answer several questions:
- How does your farm compare to the other in the neighborhood? Is your farm average for the neighborhood, above average?
- What is the average market rent in your neighborhood and how does my current rent compare? What is the demand for land to rent?
- If a reduction is warranted, how much is the right amount?
- Are there other farmers who might pay more rent while maintaining my farm?
- Is this in my best interest – does it create a win-win lease structure?
- Are there improvement projects that could increase the rental rate of my farm?
- Who is representing ME to meet my goals for my farmland asset?
A professional farm manager can answer all these questions and more.
Why should I consider professional farm management?
As a farmland owner, you own an asset of significant value. If you own just 200 acres that property could easily be worth more than $1 MM. Most investments this size have a professional manager/CEO overseeing it daily. Halderman Farm Management understands current lease terms and rates. We know the current technology available in agriculture. We make it our business to know the current USDA Farm Bill and how they benefit your farm. We become your fiduciary and learn your goals and objectives. We implement what you want to happen on your farm. The thousands of dollars you have in a mutual fund, or an individual company is being managed by someone. Shouldn’t your farmland investment also be professionally managed?
What is professional farm management?
Farm Management services range from an occasional consultation to complete management of the farm operation.
You can expect a farm manager to:
- Become familiar with the farm, farm owner, operator (where applicable) and the expectations for the farm operation and perform a complete inspection of the farm
- Make recommendations regarding lease alternatives and discuss the income potential and benefit of each
- Locate the best-qualified operator (if necessary) or meet with the current operator and negotiate a lease agreement.
- Monitor participation in and compliance with applicable government programs.
- Develop a soil testing and monitoring program for the long term fertility improvement of the farm
- Maintain complete financial records on the farm operation and report regularly to our clients.
This is just the beginning of what Halderman can do for you! Each of our clients have different needs, desires, and directions in mind for their farms. We listen to our clients and develop unique plans for each landowner. Halderman Can Help!
F. Howard Halderman AFM, President
Halderman Farm Management Service, Inc.
800-424-2324 www.halderman.com
Wabash, IN 46992
Halderman leads a 90-year old family business that manages farmland throughout the eastern Corn Belt and in 19 states from one ocean to the other. Halderman offers professional farm management, real estate sales and acquisitions, and farm appraisals.