378x 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!
no reviews yet
Please Login to review.