For many, the relationship to land is not only a financial one, but a very emotional one. Whether it’s a farm that’s been passed down through generations or a recent purchase, Hertz Farm Management helps landowners get to the root of both, so to speak.
“As people continue to pass down farmland through their families, that second, third and fourth generation may have never even seen the farm, much less know how farming and the business of farming works,” said Jeff Troendle, president of farm management for the company. “The first thing we ask a client is, what do you know about your farm?”
At Hertz, it’s all about educating the owners and providing each with basic information about the farm, everything from where it is if they’ve never seen it, its size, the soil productivity rating, how much it can generate, the farm’s value and options for owning the land.
According to Troendle, the first thing most people want to know is if they should keep the farm or sell it. Others who acquire property as an investment, are often unsure of what next steps to take. Should they manage it themselves or hire someone else to do it, for example?
“Our job is to educate each client and help them make decisions that are right for them and their families,” he said. “What many people don’t realize is that farmland as an asset has many attractive investment characteristics. Our responsibility is to ensure families achieve the most value out of their land, whether that value is financial or non-financial.“
“For example, clients often ask, ‘How can my farm make the most money? Give me the most freedom? Ensure the most sustainable practices so I can pass it down to my kids and grandkids?’” Troendle said. “And for some, it’s just ‘I just want the farm to make enough money to take my entire family on vacation every year.’ Every client’s goal is different. Our responsibility as your farm manager is to understand and make your goal a reality, whatever that vision is. It’s your land, it’s your legacy.”
The benefits of owning a farm are many. Troendle said the investment offers a steady annual cash flow and appreciation in land values. Farmland values also often hold steady or perform strongly even when other traditional assets like stocks and bonds are losing value. In addition, including farmland in a diversified investment portfolio may even increase total returns while reducing risk because the land prices tend to move independently of stocks and bonds. Also, Troendle said that farmland has historically performed well and can help preserve capital during inflationary periods.
Hailing from a family of farmers himself, Troendle has a lot of passion, appreciation and respect for the potential land provides in feeding the world.
“There is a sense that this is bigger than us and I am happy to be part of it in my own little way, not only helping individual families become closer or giving them financial opportunities they’ve never had, but sustaining an industry that is oftentimes misunderstood,” he said. “It feels good that we are part of an industry that even though it often flies under the radar of most people, deep down it is vital to our short and longtime success.”
For more information, please visit hertz.ag.
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