The Professional Farm Manager

With the technological and practical changes that have taken place in American agriculture during the 20th century, landowners have come to recognize the need for more technical expertise in managing farm operations. This development marked the establishment of farm management as a professional field.

And with the increasing transfer of farmland through consolidation, inheritance, gifts, trusts, and other means persons or entities having no interest, knowledge, or understanding of agriculture have found themselves with ownership or responsibility for farmland and have often sought the services of professional farm managers.

Nearly 40 percent of the farm and ranch land in the United States is owned by people whose chief occupation is not farming. Some of these owners live far from the farm or ranch, or are unable to participate actively in management for one reason or another. Professional farm and ranch management offers non-farming landowners expertise in producing and marketing the crops and livestock raised on their farms.

The Role of the Professional Manager

The professional farm or ranch manager devotes most of his or her time to managing the owner's farm business. Though there are associated responsibilities, such as consulting, property sales, and appraisals, the manager's primary responsibility is to manage a farm or several farms.

Professional farm managers must understand production economic principles and make judgments and decisions based on the facts. They must apply commonly accepted principles, guided by their experience and the client's objectives.

One of the primary responsibilities of the professional farm manager is to determine what owners want from the farm or ranch. Some owners are concerned mainly with preserving the family farmstead, while others seek the highest possible income. In most cases, the owner and professional manager agree on a mix of goals that include such objectives as increasing net returns, finding a capable tenant operator, maintaining or improving soil productivity, conserving soil, improving the appearance of the farm, and being a good neighbor and community member.

The Manager's Duties

A professional farm or ranch manager must be an educator, a psychologist, a public relations expert, an engineer, a soil scientist, an entomologist, an animal scientist, and a marketing specialist. Perhaps the three most important functions are as a consultant to the owner, a recordkeeper, and a faun supervisor.

Consultant. As a consultant, the professional manager helps the owner/client identify feasible objectives and develop a detailed and workable program to achieve those objectives. The manager may also assist in selecting a capable person to operate the farm on a day-to-day basis (usually through a lease agreement). (See Part IV, Chapter 7.)

The manager develops plans along with cost estimates for managing operating and investment capital, labor, crop production, soil treatment, drainage, livestock production, building improvements, and farm resource expansion. He or she often makes recommendations about the cropping systems, soil fertility programs, pesticide use, harvesting methods, and crop storage and marketing.

Other duties include assessing the insurance program and representing the owner in adjusting crop or improvement losses; providing information about Government programs that affect the farm and farm income; and providing information and help in tax planning and management.

Recordkeeper. The professional manager must prepare complete and accurate reports of current progress, operational results, and the condition of improvements and submit them to the owner as often as requested or necessary.

Supervisor. As a supervisor, the professional manager oversees the marketing of all crops and livestock, collects rents, pays operating expenses, and provides the owner with current receipt and expense statements. The manager also supervises the purchase of materials and supplies such as seed and fertilizer, ensuring that the farm owner receives the best price available.

In some cases, the manager also oversees the planning, construction, maintenance, and repair of buildings, fences, irrigation systems, drainage, terraces, and other improvements. The manager may also supervise livestock production and marketing.

The manager may also represent the owner in such situations as public hearings and fenceline disputes which may affect the farm.

Manager-Owner Relationship

A professional farm manager may be employed by an individual, a group, a partnership, a corporation, or a trust. In most cases, the manager enters into a contract with the owner. Management fees vary depending on the type of farm, size or volume of business, degree of supervision required, and problems encountered. Fees may be based on a percentage of the owner's share of income, a flat annual charge, or time spent managing the farm.

In some cases, a professional manager devotes his or her time to the property of a single owner; in others, the manager provides services to a number of owners.

Farm Management Firms. There are firms that provide professional farm management services. In large firms, there is a greater degree of specialization among the staff than there is in one- or two-person operations.

Farm Management as a Profession

During the early part of this century, the USDA and many midwestern colleges began offering courses in farm management. Today, most agricultural colleges offer a curriculum for people who want to become professional farm managers. Courses cover topics such as agricultural economics, soils, crops, engineering, animal science, entomology, and other basic agricultural subjects.

In 1919 a group of professional farm managers met to discuss establishing an Organization that would offer a forum for exchanging ideas on farm management and promote professionalism in their field. In 1929, the American Society of Farm Managers and Rural Appraisers held its first meeting.

Today the society has State and regional chapters throughout the United States and Canada and represents some 4,500 professional farm and ranch managers and rural real estate appraisers. The society sponsors courses, seminars, tours, and meetings to help members maintain and improve their farm management and real estate appraisal skills. The society also publishes a twice-yearly journal.

Accreditation. The society confers the titles of Accredited Farm Manager (AFM) and Accredited Rural Appraiser (ARA) to members who pass a comprehensive testing program conducted by the society's accreditation committee. Farm and ranch managers who belong to and are accredited by the society must comply with stringent standards of professional practice and a code of ethics. They must each have at least 5 years of experience as professional managers, plus required continuing education programs of the society.

For information about the society and its accrediting and membership programs or about accredited member referrals, write or call the American Society of Farm Managers and Rural Appraisers, Inc., 950 South Cherry Street, Suite 106, Denver, CO 80222.

Almost 40 percent of the farm and ranch land in the United States is owned by people whose chief occupation is not farming. These owners often look to professional farm managers to effectively utilize the land, labor, and capital resources. (USDA Photo by Eugene H. Alexander, TX-51314)

The American Society of Farm Managers and Rural Appraisers, Denver, CO.