Plan to give a bonus to your farm employee? Discuss the specifics ahead of time to avoiding misunderstandings, urges Dave Resch, Scott County educator with the University of Minnesota Extension Service.

Resch says most bonuses are based on volume, performance, longevity or profitability. He cites some common bonus plans:

  • o Pay per pig sold.
  • o Pay per pig weaned above a certain number.
  • o Pay per pound of pigs per farrowing crate above a certain number.
  • o Bonus per acre worked.
  • o Bonus on a percentage of calf sales.
  • o Bonus on quality payment for milk.
  • o Bonus on conception rate for cows and heifers.
  • o Bonus for each year worked.
  • o Bonus based on net income.
  • o Christmas bonus.