Agreement between Owner of Farm and Manager

Agreement between Owner of Farm and Manager



Agreement made on the (date), between (Name of Farm Owner) of (street address,

city, county, state, zip code), hereinafter called the Owner, and (Name of Manager) of

(street address, city, county, state, zip code), referred to herein as Manager.



Whereas, Owner is the owner of farm properties which are more particularly described

in Exhibit A attached to this Agreement and incorporated herein by reference; and



Whereas, Owner desires to employ Manager to supervise, maintain, service, manage,

operate and lease to others those Properties under the terms and conditions of this

Agreement;



Now, therefore, for and in consideration of the premises and of the mutual covenants

contained in this Agreement and for other good and valuable considerations, the receipt

and sufficiency of which is hereby acknowledged, the parties agree as follows:



I. Duties of Manager. During the term of this Agreement, Manager will perform

and discharge the following duties and responsibilities:

A. Manager will prepare and submit to Owner on or before the first day of

(e.g., April) of each year, with respect to each Property, an operating plan and an

annual budget in form satisfactory to Owner. Each plan and budget will be based

on information supplied by Owner as well as the existing conditions and

information available to Manager. Each budget will include income, operating

expenses, capital expenses and crop and/or livestock program for the following

calendar year. On approval of the budget by Owner, which approval Owner may

review and modify quarterly during that calendar year, Manager may incur the

approved budgeted items of expense during each quarter of that calendar year

without further approval from Owner. Manager will submit to Owner for payment

all original bills properly documented and signed by Manager along with a

statement stating that the activity involved has been completed as specified and

previously approved by Owner. The payment of all expenses incurred by

Manager and included in the budget approved by Owner will be the sole

responsibility of Owner. Wherever possible, Manager will document all

expenditures and revenues used in the budget. Any capital improvement not

specifically authorized in the annual budget must be approved in writing by

Owner.



B. All funds collected or received by Manager with respect to the Properties

will be promptly forwarded to Owner at the address specified above. Manager

will not hold or maintain any funds in any separate or special account. All

approved expenses and services to be paid for in connection with the

management and operation of the Properties will be paid directly by Owner on

receipt of billings approved by Manager and delivered to Owner for payment. It is

the intent of this Agreement that all income from the Properties will be forwarded

to and deposited with Owner, and that Owner will pay directly, all approved

expenses attributable to the Properties.



C. Manager will comply with all reporting requirements for the Properties for

ad valorem tax purposes and maintain records regarding assessments and taxes

on each Property, investigate the assessment of taxes and assist in securing a

proper assessment. Owner will pay all taxes and assessments.



D. Manager will care for, manage and monitor the operation of the Properties

with Manager's employees, contract labor, purchase necessary supplies and

equipment, market agricultural products, supervise repairs and maintenance,

and in general, develop and manage the Properties in accordance with generally

accepted accounting, managerial, leasing and agricultural practices in the area

and report to Owner in a timely manner any problems in connection with the

Properties.



E. Manager will maintain regular surveillance of the Properties as conditions

warrant to: (i) monitor and control liming, irrigation, fertilizing, planting, chemical

application, harvesting and delivery of crops; (ii) discourage trespass,

encroachment, vandalism or other damage to the Properties and improvements;

(iii) observe condition of the crops; and (iv) supervise the lease obligations of

any lessee for repair and maintenance of the Properties.



F. Manager will report to Owner and recommend for approval, and obtain

estimates and arrange for, supervise, inspect and approve, the following services

to be rendered by third-party independent contractors: (i) repair of the

improvements located on the Property; and (ii) do other work on the Property as

Owner and Manager deem necessary for the preservation, maintenance and

improvement of the Property, for which services Owner will pay to the third-party

independent contractors the appropriate charges on receipt of the billings

approved by Manager. Manager will locate and enter into contracts with third

parties, provided Owner has previously approved the contractor and the contract

price. Owner will pay for all services contracted.



G. Manager will lease to others the appropriate portions of the Property for

farming purposes pursuant to the following lease terms approved by Owner:

1. All leases will be in writing;



2. All leases are to be prepared by Manager using the approved lease

forms attached to this Agreement as Exhibit B. Any modifications,

additions or deletions of an approved lease form will be subject to the

prior written approval of Owner. The rental and all other terms and

conditions of the leases will be subject to Owner's approval and will be in

accordance with the leasing guidelines established by Owner with respect

to the Properties; and



3. Except as otherwise directed by Owner in a particular case, all

leases will be in Owner's name;



H. Manager will keep full and detailed records covering the operation and

management of the Properties at Manager's offices at (street address, city,

county, state, zip code). Manager will keep an activity record showing the

activities and the expenditures and revenues from these activities with respect to

each Property. This record is to show a comparison of these activities to the

budget and the operating plan. This record, together with a farm inspection

report, is to be furnished to Owner not less than quarterly. Owner and Owner's

accountants will have access to these records, as well as to all other books and

records of Manager relating to the management and operation of the Properties,

at all times during normal business hours. Manager will report annually to Owner

on all income, expenses and cash transactions for the previous calendar year. In

the event of the termination of this Agreement, true copies of all these records

kept by Manager will be delivered to and will become the property of Owner.

Owner will also have access to any computer data, but no computer programs,

relating to the Properties which Manager has within his control.



I. Manager will advise Owner about participation in any government

programs for agriculture. Manager will procure all forms and appropriate data,

and execute in Owner's name, as agent for this particular purpose, and if

approved by Owner, all documentation necessary for participation in these

programs and report to Owner and any required government agencies, in a

timely manner, various crop acreages planted and yields produced. This

Agreement constitutes a power of attorney for this particular purpose.



J. Manager will negotiate and prepare farming leases for execution by

Owner (except mineral leases), on the lease forms approved by Owner and

attached as Exhibit B as these forms may be modified or supplemented from

time to time by Owner. Manager will, during the term of this Agreement, sell,

exchange or otherwise dispose of any crops accruing to Owner as a result of any

leases or custom-farming agreements, including sales or marketing of

commodities in advance of harvest or planting, provided Owner will have first

approved of the sale or disposition and the methods and terms under those

agreements.



II. Management Fee. In consideration of Manager's services, Owner will pay to

Manager a management fee based on the type of operation of the Property. Exhibit C

sets out the fee percentage for each type of operation.



A. A market valuation of inventory, including growing crops, crops in storage,

livestock on hand, uncollected rents, and other income items in inventory as of

(date), will be made by Manager within (e.g., 60) days of the date of this

Agreement, and with respect to any additional Property added to Exhibit A after

(date), within (e.g., 60) days after the addition of the Property, and will be

submitted to Owner. Owner will have (e.g., 20) days to file any written objections.

If no written objection is filed, the inventory valuation will be deemed approved.

Any objection will be resolved by the parties within (e.g., 60) days or this

Agreement will be terminated.



B. A valuation will be made by Manager as of the date of termination

provided for, or with respect to any Property within (e.g., 60) days of the sale of

that Property.



C. Manager's fee will cover all compensation and fees to which it is entitled

for services in connection with the Properties, unless otherwise expressly agreed

in writing. Manager will not receive any additional compensation or commissions

for making disbursements or negotiating or renewing leases. Special reasonable

fees may be charged for additional requested reports, settling insurance claims,

supervising construction of capital improvements, and investigating or appealing

any tax assessments, and Manager will account for and pass on to Owner all

rebates and discounts received by Manager, if any, on disbursements or

contracts on account of the Properties.



II. Term. The term of this Agreement will commence on (date), and unless

extended by written agreements between the parties, will expire on the earlier to occur

of (date), or any event stated in Section III. This Agreement may be extended as

agreed to in writing by the parties, not later than (date), preceding the applicable

expiration date of this Agreement. During any extension term, all provides of this

Agreement will continue to apply except as modified in any written agreement extending

this term. Any reference to the terms of this Agreement will include any extension term.

III. Termination

A. Manager may terminate his obligations on the failure of Owner to pay the

fees and expenses in accordance with the terms of this Agreement. Manager will

notify Owner, in writing, of the alleged failure to pay and if Owner does not cure

the failure within (e.g., 30) days after receipt of the notice, Manager may then

terminate this Agreement.



B. Owner may terminate this Agreement if Manager fails to perform his

duties and his obligations in accordance with the terms of this Agreement. Owner

will notify Manager, in writing of the alleged failure of performance and if

Manager does not cure the failure within (e.g., 30) days after receipt of the

notice, Owner may then terminate this Agreement.



C. This Agreeme