Our net fee system provides an incentive for the manager to utilize top management practices at the lowest cost to produce the best bottom line results.
Fees for custom and custom-share operations are based on adjusted net crop income, a fee system offered by very few farm management firms. This arrangement has a basic fee of $3.00 per acre plus a percent of the net crop income. Net income is derived by subtracting crop production costs including: seed, fertilizer, pesticides, drying, storage, crop insurance, machine hire, and trucking.
Crop input costs continue to rise each year resulting in silent fee increases under gross fee systems. Our net fee method provides incentive for your manager to control costs while maximizing income for you. No management fee other than the basic fee is due until crop income exceeds crop expenses.
Cash Rent Management Fees are based on a percentage of cash rent income ranging from 5 to 7% depending on the size of the farm.
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