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Rivers, MB | A farm a few miles from me has been sold and the new owners are renting out some of the ground and want the rest custom farmed to learn the ropes (new owners are coming from Europe). Not interested in renting it but am interested in doing the custom farming. How do you charge for this. It seems like they will expect it to be managed as well (making decisions regarding crop rotation, timing of operations, scouting, getting seed etc.). How do you charge for the management side. Thought of a few options
1. Charge independently for each operation on the field. Charge the going rate and then add a separate management fee (how much/ac?)
2. Charge a flat rate for whole year including management. Downside potential is that if an extra spraying is required than what you had figured, it doesn't allow for reimbursement for that pass.
3. Run the other way screaming!
The management fee is one that I'm having trouble putting a dollar amount on.
Also, how do you bill? Monthly, per operation, at the end of the year?
I'm open to suggestions. Any potential pitfalls. It doesn't help that they speak hardly any English. Yet.
This needs to make a profit. There is no interest on our part to farm this some day. It is marginal soil with limited production. I'm interested in doing it to maximize the use of our equipment and make some extra money.
Edited by mennoboy 4/3/2009 14:16
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Custom farming question
