Farmers National has been a player in the farm management business for more than 75 years, but the company has diversified considerably since its 1929 inception. One thing that has remained the same, however, has been some of its clients.

President Jim Farrell says of the company’s current 4,000 clients, 1,500 have been with the company for more than 25 years, 300 for more than 50 years and two for more than 75 years. “We have strong relationships with our clients, and we provide all the services they could possibly need,” he notes.

Originally specializing in farm management, Omaha, Neb.-based Farmers National now offers landowners myriad agricultural services, including agricultural management, real estate sales, lake management, appraisals, insurance and commodity marketing. In 2001, the company made a major diversification effort and opened an oil and gas management division, conservation and recreation services, and a hunting lease network.

Chief Management Officer Jerry Warner explains that the company’s farm management clients are primarily non-operating owners who have typically inherited land or purchased land as an investment. “Our clientele are typically professionals or retirees who do not live on the land, so we manage their agricultural assets on their behalf,” he says.

Warner says the business has evolved to include more intensive financial asset management than it once was. “It used to be that our job was to find a tenant farmer, complete the lease, pay the bills and handle any other services for the owner,” he continues. “Now, our role has changed because there are different ways to operate a farm. We analyze our client’s land and the community it is in, and present the various alternatives to the owner, helping them determine how to maximize their investment while minimizing the risk.”

Currently, Farmers National manages about 3,600 farms – about 1.2 million acres – in 22 states, CFO Dave Knutson states. To maintain close connection with its landowners and the farm operations, Farmers National employs farm managers located in 16 states. “We have a high concentration of farms in certain areas, so there is always a manager close by to provide hands-on service,” Knutson explains. “Our farm managers have local expertise and a real knowledge about the land.

“They are responsible for staffing the farm and communicating any updates to us.”

Although Farmers National competes with a handful of companies its size, its main competition comes from the local farm operator. However, Farmers National’s diverse service offerings are a draw for many landowners.

Gaining Momentum
Farmers National was purchased by MetLife in 1986, however, in 2000, the company was given the opportunity to form an ESOP and the 160-person firm is now 100 percent employee owned. It has been debt-free since 2005, and its new service offerings are strong performers, it says.

Farrell says the company’s board of directors has been instrumental in facilitating the company’s growth. “We have aggressive growth plans, including some acquisitions,” he notes.

Knutson says the Hunting Lease Network - which allows landowners to lease hunting property to hunters via online bidding – has been highly successful, with more bidders than available land.

The oil and gas division has also been a company highlight; it has doubled in revenues each year. Farmers National dedicated itself to securing a strong team of professionals, and the division is now the No. 2 oil and gas management company in the industry. “Next year, we anticipate being No. 1,” Knutson notes.