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| Leasing or operating alternatives are tailored to fit the farm and match your income, risk tolerance, and farm improvement goals. The basic leases we use are cash rent, modified 50-50 crop share, 75-25 crop share, and custom farming. |
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CASH RENT-leasing has become more popular as farm operators bid to expand their acreage base. Most cash rent leases call for two payments per year. The only expenses paid by the owner are real estate taxes, land improvements, and repairs. Setting the rent and finding a financially capable tenant who employs conscientious land stewardship techniques are major concerns when cash renting a farm. |
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50-50 CROP-SHARE - is a long-standing lease method where the tenant and landowner share income and selected expenses 50-50. This type of lease is declining in popularity because of relatively low income potential. Modifying lease terms so that land owners pay fewer expenses has helped increase landowner income if they prefer this style of lease. |
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The Custom Share - lease provides returns similar to custom farming. The owner pays 100% of the crop expenses and receives 75-80% of the crop depending on the yield potential of the farm and operator interest in this type of lease . The operator receives 20-30% of the crop for his equipment and labor. This is a relatively new lease and is an attractive leasing alternative for our clients. |
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Many of Stalcup’s clients have switched to operating their land on a Custom Farming - basis, which provides maximum control. The landowner pays all input and crop production machinery costs and receives 100% of the crop. Custom farming requires intensive on-site management and thorough knowledge of farming practices which a professional farm manager can provide. Custom farming usually provides the best return to landowners for their investment in farm management. |
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Budget summary and cash flow - is prepared on each farm early in the production year. This allows the manager to analyze profitability of the planned operation and project cash flow. By analyzing the cash flow, we can tell our clients when to expect profit distributions or when additional capital will be needed to finance the farm operation or planned improvements. |
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A farm account is established in a bank as directed by the client or we can arrange for a farm account at a Storm Lake bank. Quarterly operating statements and inventory reports document all income and expenses. Progress reports during the growing season update crop conditions and other projects on the farm.
Year end reports provide complete financial accounting, inventory, marketing intentions, proposed changes in the operation, plans for next year and other pertinent information. This gives you complete information for tax preparation, while keeping you informed of the farm's business affairs. |
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