220x Filetype PPTX File size 1.85 MB Source: www.iiasd.org
THE ISSUES Economic pressure creates need for additional income and better, more profitable use of land Important to make a distinction between Custom Farming and Farm Management Legal relationships and insurance implications are different CUSTOM FARMING • History • Special expertise (examples: planting, cultivating, harvesting, breeding, feeding, etc.) • Available labor and specialized equipment • Custom farmer farms his/her own land as well • Landowner maintains principal control of the land and methods of production CUSTOM FARMING • Your Client: Has a custom farming operation performed on his or her land • EXAMPLE: Hires someone with special equipment to harvest this year’s crop CUSTOM FARMING • Your Client: Performs a custom farming operation for someone else • EXAMPLE: Client has special knowledge or expertise in planting a certain crop and is hired by another farm owner to plant this year’s crop – but still farms her own land CUSTOM FARMING • Landowner pays all costs of production, aside from the fee paid to the custom farmer • Examples: seed, chemicals, materials used in planting, growing and harvesting • Landowner receives the proceeds from the sale of the crop and any insurance payments or payment from government programs • Custom farmer receives a flat fee or other negotiated amount But always keep in mind, this can vary!
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