LongView Farms pays the landowner a given amount of cash rent per acre each year for the use of the farm resources and has decision making authority in planning the crop production program on that farm. In return, LongView Farms receives the crop income. The benefit of using this lease is that the landowner has very little financial risk and is relieved of making day-to-day operating decisions. This lease does not fluctuate with changes in commodity prices or actual farm production.
LongView Farms pays an agreed upon base amount of cash rent per acre each year. This amount is often based off of projected crop income taking into account input costs and an estimated average cash price received. A bonus is paid following the crop year based off of that farm’s production and the average cash price for that year. This lease arrangement allows the landowner to share in the extra profits when prices and production levels are up without having to take on the bottom-side risk if prices and production levels drop during the growing season.
LongView Farms covers 100% of the indirect costs (equipment, labor, fuel, etc.) associated with production while the landowner furnishes the land. The landowner and LongView Farms then share 50/50 in the direct costs (seed, chemicals, fertilizer, etc.) and all revenues from the farm. This arrangement allows the owner and LongView Farms to share equally in price, risk and yield variations that occur while both also benefit from yield-increasing technologies or unexpected high crop incomes. Landowners are more involved in production and marketing decisions with this lease option.
LongView Farms offers full, turn-key custom farming contracts with landowners where LongView Farms provides all the labor and equipment needed to perform all production activities on the farm at specified rates per acre paid by the landowner. The landowner covers all other expenses and receives all the crop income and government payments. Under this arrangement, the landowner carries all the risk associated with the crop and is responsible for marketing the grain and managing cash flows throughout the year.