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Farm Management Agreement

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FARM MANAGEMENT AGREEMENT

This Farm Management Agreement (Agreement) is entered into as of Effective Date: by and between Owner Name: with principal address: and Manager Name: with principal address: .

RECITALS

WHEREAS, Owner is the legal owner of certain agricultural property and related assets described in Schedule A attached hereto (the Property) and desires professional management of agricultural operations, crop production and related activities on the Property; and

WHEREAS, Manager represents that it has the experience, personnel and resources necessary to operate, supervise and manage the farming operations on terms set forth in this Agreement and is willing to perform such services for Owner; and

WHEREAS, Owner and Manager desire to set forth the scope of services, payment terms, reporting obligations, and other terms governing the management relationship.

SCOPE OF WORK

Manager shall provide farm management and agricultural services as described below and in any attachments incorporated by reference. Manager's duties shall include, but are not limited to, planning, planting, fertilization, irrigation management, pest and disease control, harvesting, marketing assistance, supervision of labor, equipment maintenance coordination, recordkeeping, and compliance with applicable laws and regulations.

PAYMENT TERMS

Owner agrees to compensate Manager for management services as follows. Manager shall submit invoices in accordance with the Payment Schedule below. Unless otherwise provided, Owner shall pay undisputed amounts within Invoice Due Days: days of receipt of invoice.

Late Fee: Any undisputed payment not received within Invoice Due Days specified above shall accrue a late fee of on the outstanding balance, or the maximum permitted by law, whichever is less.

Manager shall be reimbursed for reasonable third-party expenses incurred in performing services if such expenses are pre-approved by Owner or are necessary emergency expenditures. Pre-approved expense categories and approval process:

TERM AND TERMINATION

This Agreement shall commence on Start Date: and shall continue until End Date: unless terminated earlier in accordance with this Agreement.

Either party may terminate this Agreement without cause upon written notice delivered to the other party not less than Notice Period (days): days prior to the intended termination date. Termination for cause (including material breach, willful misconduct, or failure to maintain required insurance) may be immediate upon written notice if the breaching party fails to cure within a reasonable cure period specified in the notice.

Upon termination, Manager shall deliver all records, keys, documents and property of Owner in Manager's possession and shall provide a final accounting of operations to Owner within Final Accounting Days: days.

CONFIDENTIALITY

Each party acknowledges that in the course of performance it may receive or have access to confidential or proprietary information ("Confidential Information") of the other party. Except as required by law or as necessary to perform obligations under this Agreement, the receiving party shall hold Confidential Information in strict confidence and shall not use or disclose such information without the prior written consent of the disclosing party. Confidentiality obligations shall survive termination for a period of five (5) years, except for trade secrets which shall be protected for as long as they qualify as trade secrets under applicable law.

INDEMNIFICATION AND INSURANCE

Manager shall indemnify, defend and hold harmless Owner from and against any claims, liabilities, losses or damages arising out of Manager's gross negligence, willful misconduct or material breach of this Agreement. Owner shall indemnify Manager from liabilities arising from Owner's negligence, misrepresentation or title defects.

Manager shall maintain at its expense commercial general liability insurance, workers' compensation and any other insurance reasonably required by Owner with coverage limits customary in the agricultural industry. Certificates of insurance naming Owner as additional insured shall be provided upon request.

RECORDS, ACCESS AND AUDIT

Manager shall keep complete and accurate books and records of operations, expenditures and revenues related to the Property. Owner or its authorized representatives shall have reasonable access to inspect records and the Property during normal business hours. Manager shall retain records for a period of Record Retention Period (years):

COMPLIANCE WITH LAWS

Manager shall perform services in compliance with all applicable federal, state and local laws, regulations and permit requirements. Manager shall promptly notify Owner of any notice of violation or governmental enforcement action relating to the Property or operations.

GOVERNING LAW

This Agreement shall be governed by and construed in accordance with the laws of the State of without regard to conflict of law principles.

ENTIRE AGREEMENT; AMENDMENT

This Agreement, including any schedules and attachments signed by the parties, constitutes the entire agreement between Owner and Manager with respect to the subject matter hereof and supersedes all prior negotiations and agreements. Any amendment or modification of this Agreement shall be in writing and signed by both parties.

NOTICES

All notices required or permitted under this Agreement shall be in writing and delivered to the addresses set forth below or such other address as either party may designate by written notice.

MISCELLANEOUS PROVISIONS

Severability: If any provision of this Agreement is held invalid or unenforceable, the remaining provisions shall continue in full force and effect. Waiver of any breach shall not constitute a waiver of any other breach. Neither party may assign this Agreement without the prior written consent of the other, except that Owner may assign to a purchaser of the Property.

Owner Printed Name:

By:

Date:

Manager Printed Name:

By:

Date:

Enter text✕

What a Farm Management Agreement Is and When It’s Used

A Farm Management Agreement is a written contract where a landowner engages a farm manager or management firm to operate agricultural property, manage crops and livestock, and handle day-to-day business decisions on behalf of the owner. The agreement typically defines scope of services, term and termination rights, compensation and expense reimbursement, insurance and liability allocation, recordkeeping and reporting, and authority to enter contracts or hire labor. It can also allocate responsibility for regulatory compliance, permit filings, and lien prevention. In the United States these agreements are governed by state contract law and are executed between family farms, investors, and managers.

Why a Clear Written Agreement Matters

Use a Farm Management Agreement to clearly allocate operational authority, financial responsibilities, and liability between owners and managers. A written contract reduces disputes, documents insurance and indemnity arrangements, and helps lenders and regulators assess management control.

Why a Clear Written Agreement Matters

Who Commonly Uses a Farm Management Agreement

Owners, farm managers, and investors use this agreement to set expectations and preserve rights before contracting.

  • Family farm owners who outsource operations while retaining land title and ultimate control.
  • Professional farm management companies hired to run multiple operations under fee or revenue-share.
  • Investors and trustees needing formal management authority, reporting, and liability allocation for assets.

Confirm roles, insurance, compensation, and termination terms in writing to avoid operational disputes and preserve farm asset value.

Core Elements to Include in the Agreement

A typical Farm Management Agreement contains defined services, financial terms, risk allocation, reporting, and termination mechanics to govern the manager-owner relationship.

Scope of Services

Describe daily operations the manager will perform, such as crop planning, planting, harvesting, livestock care, equipment maintenance, procurement, and subcontractor management; be specific to avoid later disputes over omitted duties.

Term and Termination

Specify contract start and end dates, renewal terms, notice periods for termination without cause, grounds for immediate termination for breach, and post-termination transition responsibilities.

Compensation

Detail fee structure—fixed fee, percentage of gross or net revenue, performance bonuses, reimbursement of expenses, and timing of payments; include audit rights for expense verification.

Insurance & Liability

Allocate insurance requirements, indemnity obligations, limits on manager liability, and responsibility for workers' compensation and third-party claims arising from on-farm operations.

Authority & Contracts

Clarify the manager's authority to enter leases, hire labor, purchase inputs, and sign contracts; specify any financial approval thresholds or required owner consent.

Reporting & Records

Require periodic financial reports, production records, tax documents, and access for owner inspections and independent audits; define retention and electronic delivery formats.

Essential Information and Fields to Collect

Parties: Owner and manager legal names
Property Description: Legal description or parcel ID
Effective Date: Use MM/DD/YYYY format
Compensation: Fee method and payment schedule
Insurance: Required policies and coverage limits
Signatures: Printed name, date, and title

Step-by-Step: Complete and Execute the Agreement

Follow these steps to complete and execute a Farm Management Agreement correctly, including verification of authority and witness or notarization if required.

  • 01
    Prepare Draft: Assemble terms, exhibits, and property description.
  • 02
    Confirm Authority: Verify signers hold legal authority to bind parties.
  • 03
    Negotiate Terms: Agree compensation, term, and termination clauses.
  • 04
    Execute & Distribute: All parties sign; provide copies and store originals.

Customize an Online Signing Workflow

Configure an online workflow to collect signatures, route approvals, and preserve an audit trail for the Farm Management Agreement.

Field Configuration
Document Format PDF or DOCX with flattened copy
Signer Authentication Email link, SMS code, or KBA
Conditional Fields Show expense fields only if reimbursable
Storage & Integration Save to Google Drive or NetSuite

Platform and Integration Considerations

Choose platforms and integrations that match your recordkeeping, audit, and regulatory compliance needs for farm operations.

  • Integrations: Salesforce, NetSuite, Google Workspace
  • File Formats: PDF, DOCX, and Excel templates
  • Authentication: Email, SMS, or SSO options

Typical Electronic Signing Flow

Typical e-sign workflow for a Farm Management Agreement, from upload through signature, notarization, and final delivery.

  • Upload Document: Add final draft and any exhibits for signing.
  • Place Fields: Insert signature, initial, date, and conditional fields.
  • Set Signers: Assign signing order and authentication methods for each signer.
  • Complete: Signers receive final PDF and audit certificate.

Typical Timelines and Administrative Deadlines

Common timelines and administrative deadlines related to negotiating, executing, and administering a Farm Management Agreement.

Effective Date:

Specified by parties; governs when duties begin

Execution Window:

Allow 7–30 days for negotiation and sign-off

Insurance Proof Due:

Provide certificates before operations commence

Renewal Notice:

Typically 30–90 days advance written notice

Record Retention Start:

Retention period begins on effective date

Common Preparation Mistakes to Avoid

  • Vague service descriptions create disputes when managers claim tasks outside the written scope, leading to litigation or unpaid work.
  • Failing to require proof of insurance exposes owners to liability when third-party claims or employee injuries occur during management activities.
  • Allowing unlimited contracting authority without financial thresholds can result in unapproved debts or long-term leases binding the owner.
  • Not specifying data access and record retention leads to missing tax documents, audit difficulties, and compliance failures.

Practical Risks and Consequences of an Improper Agreement

Contract Disputes: Litigation costs and delays
Financial Loss: Unrecovered expenses or lost revenue
Tax Penalties: Missing records can trigger IRS penalties
Liability Exposure: Third-party suit cost and indemnity claims
Insurance Gaps: Claims denied for noncompliance
Operational Disruption: Production delays and supply chain issues

Pricing and Feature Snapshot for eSignature Vendors

Compare baseline pricing and feature availability for eSignature vendors relevant to executing a Farm Management Agreement, with signNow listed first.

signNow DocuSign Adobe Sign PandaDoc HelloSign
Starting Price $8/user/mo $15/user/mo $14/user/mo $19/user/mo $15/user/mo
Free Trial 7-day free trial Verify Verify Verify Verify
Bulk Send Yes Verify Verify Verify Verify
Audit Trail Yes Yes Yes Yes Yes
HIPAA Compliant Yes Verify Verify Verify Verify

Frequently Asked Questions About Farm Management Agreements

Common questions about creating, signing, and enforcing a Farm Management Agreement are answered below to reduce execution errors and legal uncertainty.


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