What Does Farm Management Include?
This is a common question from absentee farmland owners who don’t have a farm manager in place. And the answer can change depending on the state, size, or type of farmland you own.
The simplest way to answer this question—regardless of where your farm resides— is this: Farm management includes an experienced farm manager who serves as an invaluable partner who navigates the complexities of your agricultural investment, especially if you live out of state.
Beyond overseeing daily operations, a farm manager serves as a bridge between your investment goals and the realities of agricultural production.
Professional Management from Day One
Right from the start, absentee farmland owners receive incredible value from working with a farm management company, eliminating costly mistakes before they happen. As a farm owner, you can:
- Receive higher initial rental rates negotiated by experienced professionals
- Avoid costly setup mistakes common to new landowners
- Implement value-enhancing practices from the beginning
- Access established networks of qualified operators and service providers
- Reduce your stress and time commitment during the learning curve
- Optimize financial performance from the first growing season
10 Benefits to Having a Farm Manager
Here are 10 benefits for partnering with a farm management company from the start to enhance your farmland investment experience:
- Acquisition Process Guidance
- Understands Iowa’s Agricultural Landscape
- Establishes Farm Operational Structure
- Documentation & Agreements
- Sustainable Land Management Practices
- Regulatory & Compliance Requirements
- Financial Management & Planning
- Farm Operator Relationships
- Long-term Strategic Planning
- Ongoing Monitoring & Adaptation
1. Acquisition Process Guidance
The path to successful farmland ownership begins well before closing day. Your farm management team provides invaluable assistance during the acquisition phase as they:
- Evaluate properties based on soil quality, drainage, productivity history, and improvement value
- Analyze realistic income potential and ROI projections
- Identify drainage issues, boundary disputes, or environmental considerations
- Provide insights on local market conditions and fair valuation
- Connect with qualified agricultural lenders, attorneys, and other professionals
- Perform pre-purchase inspections and due diligence
Working with a farm management company during acquisition helps you make informed decisions based on accurate information and realistic expectations.
2. Understanding Iowa’s Agricultural Landscape
A farm manager has local insights into crop selection, rotation strategies, and improvements to enhance your land’s productivity and value. They understand the characteristics of Iowa farmland, including soil quality, historical crop performance, water rights, and local agricultural trends.
Farm management expertise extends beyond what an absentee owner could glean from remote research:
- Local productivity patterns and yield expectations
- County-specific drainage systems and watershed management
- Regional rental markets and common lease structures
- Local agricultural service providers and resources
- Regional conservation programs and opportunities
- Established networks of qualified farm operators
This localized knowledge proves invaluable for landowners, especially those coming from outside the agricultural sector or unfamiliar with Iowa’s specific farming practices.
3. Establishes Farm Operational Structure
One of the most crucial early decisions you’ll make is how your farm will be operated. Your manager would help you evaluate your options, such as:
- Cash rent leases with various payment structures and terms
- Flexible leases that share risk and opportunity between owner and operator
- Crop share arrangements with different split percentages
- Custom farming where you maintain more direct involvement
- Hybrid approaches tailored to your specific situation
Each operational structure carries different levels of risk, management requirements, and potential returns. Your manager will help you select and implement the approach that aligns with your investment goals, risk tolerance, and desired level of involvement.
4. Documentation & Agreements
Agricultural leases and operating agreements require careful attention to protect your physical assets and financial interests. Your farm manager would help you develop:
- Lease agreements with clear terms and expectations
- Conservation requirements to protect soil resources
- Fertility maintenance provisions to preserve land productivity
- Insurance and liability requirements for operators
- Defined responsibilities for maintenance and improvements
- Established processes for communication and decision-making
Professional documentation from the outset prevents misunderstandings and lays a foundation for positive landlord-tenant relationships.
5. Sustainable Land Management Practices
Iowa’s rich farmland represents a precious resource that requires careful land stewardship. From day one, your farm manager should help you implement:
- Soil conservation to prevent erosion and maintain organic matter
- Water management to protect productivity and environmental quality
- Fertility programs based on soil testing and nutrient monitoring
- Pest management that balances effectiveness with stewardship
- Tillage practices appropriate for your soil types and topography
These sustainable farming practices not only protect your investment but often enhance its long-term value and productivity potential.
6. Regulatory & Compliance Requirements
Agriculture compliance is complex, with environmental regulations, land use restrictions, and agricultural subsidies evolving constantly. A farm manager stays current with these requirements so your land stays in compliance. Here are a few examples:
- Property tax requirements like agricultural exemptions
- Conservation compliance for federal program eligibility
- Water quality regulations affecting agricultural properties
- Wetland and conservation easement requirements
- Local zoning and land use regulations
- Reporting requirements for agricultural programs
Your manager can navigate crop insurance, government assistance programs, and conservation initiatives that can be overwhelming for an out-of-state investor. Professional guidance can maximize your available benefits and minimize potential liabilities.
7. Financial Management & Planning
Through informed decisions about crop selection, input costs, and market timing, your manager can optimize your farm’s economic performance. Their local relationships with equipment suppliers, seed providers, and grain buyers can also lead to cost savings and favorable contract terms.
Additionally, your manager may create detailed financial reports that offer transparency into your farm’s performance, so you understand the return on your investment. Your manager can:
- Establish financial tracking for your agricultural investment
- Set up depreciation schedules for improvements
- Develop capital improvement plans and budgets
- Create financial benchmarks to measure performance
- Implement tax strategies specific to agricultural properties
- Establish reporting systems that provide clear visibility
Proper financial management from the beginning makes ongoing oversight more effective while providing documentation for financing, tax purposes, and future planning.
8. Farm Operator Relationships
If you’re utilizing a farm operator rather than farming yourself, the relationship with that operator significantly impacts your investment’s success. Your farm manager can:
- Identify and screen qualified operators with proven track records
- Clearly communicate expectations and responsibilities
- Establish reporting and monitoring processes
- Develop collaborative approaches to farm management decisions
- Create incentives that align operator activities with owner objectives
A strong operator relationship ensures your property receives appropriate attention and care.
9. Long-term Strategic Planning
Successful farmland ownership requires looking beyond the current growing season. Strategic planning maximizes current returns and long-term appreciation potential. Your farm manager can develop:
- Multi-year improvement plans that enhance property value
- Soil building programs that increase productivity over time
- Infrastructure strategies that support operational efficiency
- Conservation implementations that offer environmental and economic benefits
- Estate and succession considerations for family-owned properties
10. Ongoing Monitoring & Adaptation
Your manager can provide regular property inspections throughout the growing season, monitoring weather impacts and potential concerns. They’ll also provide detailed documentation about field conditions and include photography in the reporting.
Your farm manager will assess your farm operator’s performance and recommend adjustments to management practices when needed. Basically, your farm manager is your eyes and ears on the ground, and they care about your farm’s success.
Partner with Stalcup Ag for Farm Management
At Stalcup Ag, our management approach focuses on optimizing your returns. Whether you’re buying your first agricultural property or adding to an existing portfolio, partnering with our management team ensures your farmland investment achieves its full potential.
Learn more about our farm management services or contact us today to talk about how we can help you manage your Iowa farmland property.
Read next: What Type of Lease Agreement is Right for Your Farm?
