Farmers National Company offers the following tips to maximize the profitability of farmland ownership.
- Review your lease yearly: Costs and values change from year to year, so those aspects of your lease need to be considered and re-visited on an ongoing basis. Be certain to secure your second-half lease payment on all cash rents.
- Know how your land compares to neighboring land: Most landowners feel theirs is “the best in the county,” but differences exist between farms. Make sure you know how your farm's production capability and improvements compare to other farms in the area as you compare lease terms with other landowners.
- Be wary of extended leases: While signing on the dotted line for an extended period of time seems reasonable, be careful. Most leases operate on a year-to-year basis, which allows for changes to be made in accordance with costs for equipment, seed, fuel, etc.
- Look at ways to improve your farm's production to increase your income: Look for trends that may be occurring. Are there other avenues available to enhance your property’s income? Take an honest look at the farm you own and evaluate what improvements might enhance production and thus the rent of the farm.
- Be involved: Just because someone else tends to the land, don't be afraid to inquire about soil test results, yields and cropping plans. Managing a farm is like managing any other major asset. It takes diligence and care to maintain and improve the value of the asset.
For more info, visit www.farmersnational.com.
-- Farmers National Company