Farmland is an attractive investment opportunity for long-term investors. Offering strong performance, farmland investments generate revenue and augment portfolio diversity while presenting a low to average risk factor.
Moore & Warner Farm Management works with farmland investors to identify properties, navigate the transition to ownership, as well as develop and manage farm operations as profitable businesses.
Professional farm managers dedicate their
energies toward investor goals, including and not limited to the following:
Capital Preservation
- Select tillage practices and work with operators to preserve soils and prevent erosion
- Develop nutrient management plans tailored to individual farms to protect and enhance fertility
- Direct field maintenance including terracing and leveling to enhance farm value and production
- Continuously monitor drainage, tile, irrigation, and well systems
- Advise cost-effective repairs and oversee necessary maintenance
- Provide cost-benefit analysis for maintenance of farmhouses, storage sheds, cribs, bins and other physical structures and implement investment-oriented plans
Revenue
- Negotiate leases to meet investment expectations and treat operators fairly
- Develop nutrient management plans to keep soils at high production capacities
- Select inputs based on the latest research and field testing
- Support operators with resources and consultation specific to client farms
- Work with operators to scout, diagnose, and treat problems before they develop
- Provide cost-breaks through bulk purchasing
- Identify and implement advantageous government programs
Long-Term Strategic Planning
- Define realistic investment goals
- Develop long-term plans for income and investment maturity
- Educate investors about the science and business of agriculture
Risk Mitigation
- Develop leases to reduce legal liabilities to landowners for operations on farmland and protect assets in written agreement
- Select and administer appropriate insurance programs
- Reduce income volatility through prudent planning and problem solving
Farmland Purchases and 1031 Exchanges
Although Section 1031 exchanges allow landowners to defer capital gains taxes on farm sales, the requirement that sale revenue be reinvested within 180 days places investors in high-pressure situations. Our knowledge of farmland sales and our extensive contact network helps clients identify sound exchange properties in the timeframes they require.
- Provide independent, unbiased assessment of farm for sale - we do not broker or sell farmland
- Evaluate potential purchases for market competitiveness, farm quality, potential, and risk
- Coordinate complex purchases and exchanges with clients and financial officers
Record Keeping and Financial Reporting
- Compile comprehensive quarterly, semi-annual, and annual reports
- Provide full-accounting of all farm transactions
- Prepare appropriate records and assist clients in tax preparation
