FGS Agri provides labour, machinery, management and a share of variable costs, and the landowner provides land, buildings, fixed equipment and a share of variable costs. Both sides would have a share of each livestock in the deal. Companies remain separate and have their own VAT, accounting and tax decisions. FGS Agri would not be a tenant in the holding company. FGS Agri can provide management, operations manager and personnel or equipment to operate the farm according to an agreed plan. We offer transactions with fixed fees or payments on a profit-forwarding basis. This service can be operated in conjunction with our Farm & Estate Management Service. Crop Sharing is the oldest form of a business management agreement. Farmers make their land available and tenants carry out all the necessary work. The cost of seeds, fertilizers, pesticides and other stocks is distributed equitably. The profits of the harvests are equally divided equally between the landowner and the tenant. Farmers sometimes choose to lease their land to different producers. The terms of leases, often referred to as farm management agreements, differ from the type of compensation farmers receive for the operation of their land and the responsibility they have to their tenants.
FGS Agri operates an efficient and highly productive machine park and can use it under an equity or maturity contract. FGS Agri can provide additional support and management of the agreement. What type of business agreement does a farmer enter into with a professional farm manager? The contract between the operator and the management company describes the responsibilities of the professional farm manager. The lease with the tenant, on the other hand, determines the tenant`s responsibilities. The three most common leases are: harvest share, direct management and cash rental. Under a Crop Share lease, landlords and tenants share expenses and income in a ahead-agreed ratio (a 50/50 agreement is common). The farm manager chooses or retains the tenant and makes the normal production, purchasing and marketing decisions for the owner. Harvest leases are most effective for farm owners who can bear weather and price risks. During direct management, the owner pays all expenses and receives all revenues. The farm manager stops the agricultural work on a personalized basis and the manager makes production, purchasing and marketing decisions. When a farm is rented with cash, the manager chooses the tenant, but does not make any purchase or marketing decisions. However, it is customary for the farm manager to provide in the lease agreement information on crop rotations, fertility levels and tillage practices that the tenant must follow.
Cash leases are most effective for owners who need a guaranteed return from the farm. FGS Agri would be responsible for the day-to-day operation of the operation and would participate in regular management meetings. FGS Agri would manage the agreement on behalf of the landowner. FGS Agri will carry out farms on a joint venture basis, where the combination of resources such as labour and machinery can reduce costs and increase the profitability of the business for both parties. FGS Agri will provide labour, fuel and machinery and carry out operations on the farm. The landowner provides the seeds, fertilizers, sprays and some specific overheads and manages the bank account. Both parties will receive an initial fee for their contributions. The remaining surplus shall be distributed among the parties at an agreed rate.
FGS Agri will be responsible for the day-to-day operation of the farm and will participate in regular management meetings. At the beginning of the agreement, budgets and financial targets will be set and FGS Agri will take responsibility for achieving them….