FAQ – Farm Management

  • Why should I consider professional farm management?
    1. 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.  What other investment of that size do you have that does not have a professional manager, watching it on a regular basis?  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 it can impact and benefit your farm.  Our business is agriculture and specifically we know farmland ownership issues.  We become your fiduciary and manage your farm like it is our own!  We learn your goals and objectives and work to implement what you want to happen on your farm.  The thousands of dollars you have in a mutual fund, or individual company is being managed by someone.  Shouldn’t your farmland investment also be professionally managed?
  • How do I determine a fair rent?
    1. The market determines the rent for any given farm. Therefore the best way to determine a fair rent is to do a competitive bid process on the lease terms you seek OR find out rents in the surrounding area and use them to compare to your farm and make your own analysis.  Halderman Farm Management can execute both of these strategies on your behalf.  This makes leasing your farm very simple.  Turn over the management of your farm to us and we will make sure you maximize your current farm income opportunity and enhance the value of your farm over time.
  • How do I find a new tenant?
    1. This process can be extensive if you are unfamiliar with the area around your farm. Start by driving the roads near your farm, learn the neighbors, see who is interested, talk to the county extension agent and local ag bankers for references.  Work with the local ag vendors to see who are likely prospects.  Go through a typical interview process and then once you’ve chosen some likely candidates begin negotiating.  The alternative is to hire Halderman to do all of this for you!  In many locations this work is already complete and known and therefore we are very efficient in this process and can deliver a few viable tenant prospects to you within a couple of weeks.
  • What is the best lease type?
    1. This can vary based upon your goals, income objectives, risk tolerance, size of the farm, local tenant market and long term plans for the farm. Halderman can work with you to determine viable lease options that meet your goals and income needs and then do a lease analysis to show you the various options.  This analysis will show the income potential of each as well as the price and production risk.  We will make a recommendation and you make the final decision.  Once a decision is made we will execute the strategy, negotiate the lease and put it in place.
  • Can’t my tenant be my manager?
    1. Very simply he has a conflict of interest. Your tenant is likely a very good manager of HIS farm operation.  That makes it in his best interest to lease your farm as low as he can.  The less rent he pays, the better his farming operation will perform.  In addition there are other decisions that must be made, such as which Farm Bill option is best for the farm, that may also generate a conflict of interest.  Having a professional farm manager working with the farm tenant on those decisions is a good business practice and insures you maximize your opportunities and the tenant the ability to farm the farm long term since he likely won’t be beat out one rent.
  • How many times will you see the farm?
    1. This varies by operation, projects in process and your goals for the management of the farm. Typically our managers will see the farm at least 4 times per year in a normal year.  Most often we will see it 6 or more times and depending on its location it could be almost every week.  We would meet with you to learn your desires and expectations and then strive to meet those.  In addition we will be on-site for overseeing large projects to insure you are receiving what was expected.
  • What else do you do as a manager besides lease the farm?
    1. Work with the tenant on crop plan for the upcoming year.
    2. Work with the tenant on farm improvement projects, if needed.
    3. Oversee the implementation of the USDA Farm programs, if applicable.
    4. Pay all expenses and handle all receipts for the farm. Provide complete financial reports to ownership.
    5. Oversee capital improvements.
    6. Manage all building improvements and leases.
    7. Manage all assets on the farm. This includes the cropland, buildings, timberlands, recreational land, water assets, etc.
    8. Market your share of the commodities produced.
    9. Communicate with you, regularly and in the form you prefer.
  • Why is a fee with a percent of the gross factor good for me?
    1. This type of fee aligns interest. The better the farm performs, the better we are compensated.
  • Can you assist me with estate planning, tax strategies, etc.?
    1. Yes, Halderman has relationships with law firms and accounting firms who know agriculture and can assist you with these sorts of issues. We’ve had the opportunity to work with many farm families throughout the years and therefore developed a vast pool of resources to benefit our clients.