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| I've cut and paste below the only FM fees I' ve seen posted on a website. I've had some exposure to various farm farm managers from different perspectives. I believe the 7% is for crop share/custom farming where they are actively involved in all the management decisions. I think cash rent situations are probably in the 3-4% range of the landowners income. Like everyone else in ag, most will negotiate if there is a large enough deal involved and a price-conscious potential customer that plays off several offers against each other. It's easy for farmers to wish they weren't involved, but if you're a landowner that doesn't know much about ag and may live in a location removed from the farm, then a knowledgeable farm manager can often increase your income significantly while making sure the land is not abused. We can pretend we're all above average and that no farmers would ever take advantage of a landlord that was less-than-current on rental values, but the reality is the rental marketplace is such that a landowner can usually more than pay for a farm management fee, based on the farm manager's ability to be a tougher negotiator than most landowners either can be or want to be.
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Farm Management Fees
Complete Farm Management
(Includes all services.)
1) 7% of Landlords’ share of gross income for Grain Farms.
2) 8% of Landlords’ share of gross income for Livestock Farms.
(*Minimum fee equal to the greater of $5/acre or $500/yr)
Recordkeeping Service
1) 2% of Landlords’ share of gross income (Grain & Livestock Farms).
Grain Marketing Service
1) 2% of Landlords’ share of gross income.
Combination Recordkeeping & Grain Marketing
1) 4% of Landlords’ share of gross income.
Consultation, Tenant Selection & Lease Negotiation
1) $100/hour ($100 minimum charge).
Complete Farmland Brokerage Service
1) Traditional Brokerage, Public Auctions, Sealed Bids (Call for Quote)
**FEES MAY VARY, DEPENDING ON THE SIZE, LOCATION, AND SCOPE OF DUTIES INVOLVED.**
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Farm management company fees charged
