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NE Ohio | Ultimately it's your choice on what to offer and the Manager's choice on if they can do better elsewhere. My suspicion is this Farm manager might be related somehow though.
Have the conversation about a transition plan and put something in writing through shares / LLC, etc.
You hold the equity, but the other person is now doing the work. So would expect them to not feel super happy. You're in control and it sounds like you know that, but it also sounds like you only want to (or maybe are able to based on the comment of something happening a few years ago) handle the money and combine.
So look at what type of profits the current operation generates....not sure where you are located, but guessing midwest. If you own a decent chunk of the land, probably able to clear 100-200 / acre pretty consistency.
So 250 - 500K, likely some of that gets put into section 179 depreciation. You hold more risk, but sounds like the operation isn't going to run without the other person.
Zip recruiter and google give a wide range -- seems like 40K - 130K for a farm manager salary. That's a reference point for a free market hire. Assuming your person is better than an off the street hire for your particular operation.
So are they worth getting 1/2 of the current operating profits? And/Or give some benefits that can be written off on your side - vehicle, health care, etc. | |
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Employee/Manager Salary?
