They own neither land nor agricultural machinery, but they manage farms, often large crops, and are paid in part from the margin made available. These are farm managers, a developing profession which, for some companies, consists of managing land on behalf of landowners, using agricultural work companies.
“It is set to develop”
The farm management companies own neither land nor agricultural machinery. They are positioned as a complement to agricultural work companies, which carry out the work. To be a true advisor, you don’t have to be a judge and party. If the plowing is not done well by the agricultural work companies, their role is to alert them.
We at AIM Farmlands a farm management company invest in Turkey defend the interests of the owner-operator. We have been practicing this profession for past many years. We have set up our company a few years ago, which today manages 3,500 hectares.
We noticed that in large agricultural works companies, the technical aspect and advice were neglected and that this had an economic impact. We also had requests beforehand, from people who would prefer not to have any more employees.
The majority of the risk is taken by the farmer.
The location and the quality of the soil are the most important factors for a successful investment – similar to an investment in real estate. The land should be so good that it is suitable for all cultures. The land value is given in the “arable land”, where 100 represents the optimal value.
Invested in the management of the farm and associated with the results, one could almost speak of them as farmers. But they deny it. We are your advisor managing everything for you. We take some of the economic risks on our service, but the majority of the risk is taken by the farmer, who continues to act like a normal farmer.
The situation becomes even more complex when they manage farms where part of the land is rented. Some companies choose not to intervene with the farmers, considering that the tenant farmer takes a risk of termination of his lease by the owner. Others, on the other hand, consider this scheme to be perfectly legal.
Agriculture is endowed with specific rules: it falls socially under the agricultural social mutuality system, fiscally under the agricultural benefits system and legally, the activity is of a civil nature. It can be exercised in a company in its own form and it is governed by a specific code, the Rural Code.
We at AIM Farmland offer training and support to help you make the right choices in fiscal, social, or legal matters.
In addition, there should be enough farms in the vicinity to be able to realize the rent. If you then invest near cities, you have the chance of converting it into building land. This then means a multiplication of the investment.
Finding good investment opportunities is the core problem. Of course, some farmers are giving up their businesses. Here you can try – especially if there are communities of heirs – to buy arable land.
The market is tight and most of the time it is only possible through “inside information”. In structurally weak areas there is more likely to be an opportunity to acquire land, but caution is advised here. Most of the time, you can only buy fields with a small number of arable land, for which there is no demand from farmers.