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I will agree with parent comment and add a personal anecdote that perhaps provides some models for you to consider. I am a farm boy. There was one night many
by dbcurtis 4y ago
I will agree with parent comment and add a personal anecdote that perhaps provides some models for you to consider.
I am a farm boy. There was one night many decades ago where I said to myself: "You can either wrap your head around DiffEQ, pass the course, and graduate with an engineering degree, or go home and clean hog barns for the rest of your life." I chose option A. While this makes a good story, it is also the literal truth. The point being, I grew up in farming and understand it, but have little desire to manage a farm myself. Same goes for my wife.
Eventually with the passage of time, we inherited farm land. Our path has been to rent the land to farmer operators that we have good relationships with, and manage the leasing ourselves. If course, with the advice of an attorney and an accountant that are both local to the area where the farms are and who do a lot of farm-related practice. We feel we understand farming well enough to engage with farmer-operators and negotiate fair rents, get soil-conservation terms in our lease agreements that we desire, negotiate capital improvement projects that are mutually beneficial (some of our farm land had drainage tile installed a few years back, for example.)
If you go this path, you will want local legal and accounting advice. You should also understand enough of the "big picture" items like the ebb-and-flow of the pricing of the commodity in question, how that impacts rents, the rent models used with operators for that particular commodity, and any farming practices that you with to enforce, such as soil and water conservation, appropriate use of pesticides and herbicides, who gets the rent from pollinators if that applies, etc.
Option 2 is farm management companies. My farm land is in Iowa and Minnesota, so hardly coffee country. It is corn (maize) and soy bean country. There is a corn-belt farm management company called Hertz farm management that is one of the large, reputable farm management companies that many people in our situation use. You might be able to find an equivalent firm. This is a good option if you want something more turn-key, and don't feel that you have sufficient expertise be a landlord-with-a-clue.
- AlbertCory 4y agoYour answer and the parent's are both awesome. Thanks to both of you.
- beAbU 4y agoYour note about local services is super important. Local lawyers, accountants, banks and suppliers. People who understand the land, the crop, the challenges and all that. In my locality we have hyper local banks that only specialize in loans for local farmers. They understand the market, their clients and the associated risks. 300km in any direction is far enough that the rules are different.