By: Wm. Bruce Clevenger, Field Specialist, Farm Management ( clevenger.10@osu.edu) and Amanda Douridas, Extension Educator, ANR, Madison County (douridas.9@osu.edu)
How did that farmer pick up that ground to farm next year? This may be a question you’ve found yourself asking and feel like an opportunity has been missed. Farmland operators can change in a very public space (i.e. auctions) or in private settings with only a few parties involved. It is common for farmers to want to add more acres to the farming operation, making it a competitive and stressful part of farming. More acres can help lower some fixed costs (i.e. machinery, etc) per acre. However, adding more acres may increase land cost per acre if the current farmland is owned or rented at a lower rate compared to the price of the next rentable/ownable acre.
Farmland is the asset that may feel out-of-reach if not currently renting, crop-sharing, or owning the property. Here are some strategies to position a farm manager to be at the right place at the right time.
Have a Farm Resume: The farm manager can use a short, 2–4-page document to share important information about the skills, resources, and abilities to be the preferred farm operator of choice. A farm resume describes the people, experience, mission/vision, and a tactical approach to how the farm does business. It can be shared during or following a conversation with farmland owners that leaves them with contact information and a summary of key information. Consider adding more acres to a farm operation as seeking a new job with a potential new boss. A farm resume can support how a farmer presents themselves in-person and on paper.
Some key pieces of information to include:
- Farm Name
- Key operator name(s) and contact info
- Farm mission and vision
- Farm history and experience- keep this focused on making your farm standout
- Certifications
- Examples of how the farm cares for the land- responsible fertilizer use, sustainability practices, etc
- What the farm can offer beyond farming as a goodwill gesture, if applicable- think snow removal, tree trimming, etc
Consider including with the resume letters of recommendation from current landowners the farm is working with. Two of these from landowners in the same area of the land you are seeking could provide strong support in choosing your farm.
Know your Financial Position: Adding more farmland is a serious financial commitment. Adding more acres can be a pathway to success or equally, failure. New acres must fit into the farms budget and/or long-term goals. All conversations about adding acres will eventually lead to a bid for rent or purchase. The farm manager must know the range of price that will work for the farm and know what price is too high and will only cause a financial burden. Consider crop-share arrangements if the landowner is willing to spread the risk between the parties. A farm manager must have an accurate balance sheet and farm income statement ready to go to a lender with short notice if the negotiations are about land purchase or a need for an operating loan. Landowners want to know that they will be paid according to the terms of a lease or purchase. There is no sense in having a conversation with a farmland owner about adding more acres if the farmer does not know their own financial position.
Get Connected to Land Professionals: Ohio has many professionals that assist farmland owners in sales and leases. A farm manager might consider contacting a realtor and let them know their interest in leasing or owning farmland across a geographical area. Another group of professionals are members of the Ohio Chapter of the American Society of Farm Managers and Rural Appraisers. Building a relationship with a land professional can help stay connected to opportunities that might be within or beyond the local neighborhood of farmland owners. Some professional farm managers have an application process, and they keep those applications in a file along with other documents to have on hand as land becomes available. So even if you do not know of land coming available, it is good practice to reach out now and start building that relationship with the professional farm manager or realtor. They may want to meet in person, see your operation and gather other information to better understand how you farm.
Adding more acres to the farm operation may feel like mission impossible. Being prepared for foreseeable or unexpected opportunities can position a farmer for success.
Resources:
Designing a Farm Resume – University of Missouri:
https://extension.missouri.edu/media/wysiwyg/Extensiondata/Pub/pdf/agguides/agecon/g00420.pdf
Building Your Farm Resume – Iowa State University:
https://www.extension.iastate.edu/agdm/wholefarm/pdf/c2-13.pdf
The Basics of a Farm Balance Sheet – Ohio State University Extension
https://ohioline.osu.edu/factsheet/anr-64
Ohio Chapter of American Society of Farm Managers and Rural Appraisers.
https://www.asfmra.org/ohiochapterofasfmra/home

