Running a farm is no small feat—between unpredictable weather, tight margins, and demanding workloads, it’s essential to have a team you can count on. But how do you ensure your compensation keeps talented employees on the farm and makes your business sustainable for the long haul? Here’s a straightforward guide to designing the kind of pay structure that sets your operation apart.
Compensation is more than just a paycheck. It’s the foundation for building trust, motivating your team, and growing your farm’s reputation. A strong pay structure also helps you:
Stress doesn’t just live in someone’s head—it shows up in their work. Tired employees make more mistakes, communication breaks down, and morale drops. In family operations, that stress can also spill over into personal relationships. Ignoring mental health doesn’t make the problem go away; it usually makes it worse. That’s why being proactive matters.
Start by listing all the roles you need for the year. Categorize them by skill level and responsibility, and establish clear paths for advancement. For example:
This not only clarifies expectations for your team but also gives every employee a roadmap for growth.
Clear roles and advancement paths not only clarify expectations—they also reinforce your farm’s culture and values. Learn more about building a strong workplace environment in our blog Fostering Culture in Your Farm Operation.
Don’t guess—look up actual pay data from nearby farms, job boards, and local shops. Aim for the midpoint in local ranges for most roles, with higher rates for rare or demanding positions.
For each position, create a range with a minimum, midpoint, and maximum rate. For example, a Lead Operator might earn:
Start experienced hires at the midpoint. Let raises reflect growing skills and added responsibility.
Farming has busy and quiet periods. Build in flexibility with:
Be sure to document these arrangements so everyone knows what to expect.
Non-cash perks like housing, fuel, or meat matter. Give each employee a statement that lists:
A Total Compensation Statement helps your team see the full picture.
Keep bonuses simple and tied to results employees can influence, such as:
Pay bonuses promptly and avoid metrics outside your team’s control.
Add up your total annual payroll, including taxes and benefits. Ensure every role is justified by the farm’s margins. Adjust pay, roles, or responsibilities as needed to keep things sustainable.
Put everything in writing:
If you employ family members, clearly separate job-based pay from ownership returns or dividends.
Want to make sure your policies and pay practices are set up for long-term success? Check out our blog: Do You Need to Audit Your HR Practices?
Review annually and adjust if competitors are attracting your candidates.
Apply cost-of-living increases to all; reserve merit raises for top performers.
Pay based on their job roles, not family ties—handle ownership dividends separately.
Building a competitive, fair, and sustainable pay structure doesn’t have to be complicated. With a little research and clear communication, you’ll not only attract top talent but also make your farm a great place to work—season after season.
Need help designing pay structures for your farm? UnCommon Farms can provide benchmarks, tools, and strategies to make your payroll sustainable.