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Profitable Landownership Topic of Omaha Workshop
Published Wednesday, July 23, 2008 at 10:02 AM
The stakes of farmland ownership have never been higher with record land values, stronger rents, biofuel's influence, changes to the government Farm Program and updates to the tax code. Non-operator land owners, and those considering purchasing farmland, are invited to attend a workshop Aug. 28 in Omaha, Neb., to learn about the financial aspects of land ownership. Workshop topics include: key indicators for commodity price direction; the profit potential of alternative lease types; the formula to managing a cash rent lease; the impact of the new Farm Bill; and profit opportunities for the future. Farmers National Company, the largest farm management company in the United States, is hosting the 2008 Landowner Workshop, titled "The Keys to Profitable Land Ownership." Farmers National Company has been providing workshop opportunities for non-operator landowners for more than 30 years. "Now more than ever it's important for landowners to stay abreast of what's happening in the market," said Jim Farrell, president of Farmers National Company. "For example, we are seeing significant disparities in cash rent rates between similar farms which is a sign that some landowners are not aware of the true value of their land." As a way to get the next generation involved, current clients of Farmers National Company and their children can attend the workshop at no cost. The Landowner Workshop will be offered August 28 from 9 a.m. to 3:50 p.m. at the Marriott 10220 Regency Circle, Omaha, NE. Registration begins at 8:30 a.m. Continental breakfast and lunch will be provided. Over 1,400 landowners attended Farmers National Company workshops last year. Seating is limited and pre-registration is suggested. For more information or to register, call 1-800-346-2650 or visit http://www.farmersnational.com/Landowner_Workshops. The cost for registration is $15 in advance and $20 at the door. # # # Top 5 ways to maximize profitability of farmland ownership Farmers National Company offers the following tips to maximize the profitability of farmland ownership. For more information, visit www.farmersnational.com or call 1-800-346-2650. ► 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 that they own the 'best land in the county', but there are differences between farms. Make sure that you know how your farm's production capability and improvements compare to other farms in the neighborhood 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 would seem like a reasonable request, be careful about doing so. Most leases operate on a year-to-year timeframe. This will allow for changes to be made in accordance with changes in costs for equipment, seed, fuel, etc. ► Look at ways to improve your farm's production to increase your income: Be a student of the farming industry. Look for trends that may be occurring. Are there other avenues available to enhance the income of your property? Take an honest look at the farm you own and evaluate what improvements, if any, could be made that would enhance production and thus the rent of the farm. ► Be involved: Just because someone else is tending to the land, don't be afraid to ask questions and inquire about soil test results, actual yields from the farm, and cropping plans. Managing a farm is just like managing any other major asset. It takes diligence and care to maintain and improve the value of the asset.

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