Land > Management

Farm land ownership contributes a reliable income stream in the form of rental income and potential appreciation to a diversified investment portfolio.  While most investors rely on their investment advisor or financial planner to implement their goals in stock and bond investments, so to should they utilize the services of a Peoples Company Land Portfolio Manager to direct their investment in farm land.

Peoples Company has developed an industry leading land management program designed to maximize return while effectively managing risk to assist you in meeting your long-term wealth management goals.  Our guiding principle is that land value is directly correlated to gross farm income.  While we cannot influence grain prices, we will establish a goal of maximizing corn and soybean yields on your farm to balance current income and long-term appreciation.

Land Management Solutions:

• Partner with high performing farm operators
• Map crop yields, fertilizer applications and chemical applications at the field level
• Build crop yield history and fertility records
• Resolve conservation and drainage issues
• Increase land value by maximizing crop yields
• Streamlined process that lowers delivery cost for management services

Our management program begins with creating a transparent and equitable relationship with a farm Operator by identifying shared business goals.  While most Operators share our goal of maximizing crop production, yield limiting factors such as soil conservation, internal drainage and soil fertility will need to be addressed in the management plan.

Our analysis begins with our Comparative Market Analysis.  We research local land markets to identify comparable land transactions to establish the baseline land value and Cap Rate.  We generally see a cash return of 3.5 to 4.5% to the landowner after paying real estate taxes and management fees.
The Farm Lease Analyzer is our “shock test” for the Landowner’s income expectations.  Historical yields, current grain price projections and current crop input prices are entered into our model and we will provide side-by-side projected returns for the Landowner and the Operator under each of our five preferred farm leases.

As an added feature of our program, the Investment Valuation Analysis incorporates commercial real estate principles to farm land investment.  The baseline land valuation and net returns to the Landowner are used to compute an Internal Rate of Return, or IRR, with and without leverage.

We have invested significant resources into our exclusive Peoples Company Farm Lease to clearly identify the expectations of both the Landowner and the Operator in achieving our shared goals.  We have addressed yield and fertility reporting, Operator and contractor insurance, environmental requirements, a sale/development clause and shared improvements in our farm lease.

Our basic, comprehensive management program for a cash lease or a flex cash lease is one quarter percent of land value annually.  For example, an owner of a 160 acre farm valued at $5,000 per acre can expect to pay only $2,000 per year for the management program described on the back or this brochure.  Through creating shared goals with productive farm Operators and utilizing the technology they are already using in their operations, we have significantly lowered the delivery cost of our service to about one-third the cost of a traditional farm management service provider.

Peoples Company Land Management Services:

General Services:

• Open a real estate trust account to deposit rent payments and pay Landowner distributions
• Review the RE tax assessments and pay the semi-annual property taxes when due
• Review and maintain adequate property, liability and crop insurance coverage
• Obtain a UCC lien search on the farm Operator and perfect the Owner’s UCC lien on the Operator
• Approve and pay bills in accordance with the Owner approved management plan
• Prepare 1099 reports at year-end
• Manage cash revenue per the Owner’s income tax planning objectives

Production Records:

• Verify crop yields with the Operator
• Obtain a soil test of the tillable crop acres every 4 years
• Maintain a record of the Operator’s fertilizer, chemical and manure applications
• Utilize the services of Russell Consulting Group for grain marketing and risk management

Land Investor Reports:

• Annual Land Investment Analysis Report (January)
• Aerial farm picture and crop narrative (July)
• Report from on-farm visit with Operator and farm lease recommendations (September)

Farm Service Agency:

• Farm program signup – DCP and ACRE
• Certify planted acres and CRP acres
• Monitor Operator’s compliance with the conservation plan and CRP contract

Farm Operator Relations:

• Maintain open communication on desired production and conservation practices
• Review lease terms and negotiate new lease terms as desired by the Owner

Land Stewardship:

• Monitor soil erosion and environmental issues
• Evaluate eligibility for new conservation programs
• Evaluate, recommend and supervise capital improvement projects
• Maintain records of capital improvements

Additional services and special projects in addition to the services described above will be billed at an hourly rate.

To speak to a Peoples Company Land Manager contact Peoples Company by calling 1-855-800-5263.