An alternative to leasing farmland is custom farming. The custom operator agrees to perform all the machine operations on the owner’s land in exchange for a set fee or rate. The landowner pays for all seed, chemicals, and other inputs, and keeps all of the crop and commodity payments. Owners of larger properties benefit from being able to focus resources on other areas of the farm, while owners of smaller acreages can realize production benefits without investing in a full line of machinery.
One of the most important parts of owning a working farm is navigating the various production options. In terms of leases, we can help clients evaluate current and potential leases, and help determine or clarify terms, value, and scope. There are a number of different types of leases – land lease, profit sharing, cost sharing – and reaching the correct lease agreement, as well as balancing income production with recreational uses, is essential to hassle-free ownership.