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CAPITATION:
By mutual agreement, the franchisors, and the land owners are paid fixed percentage amount (capitation) based on land size and the net profit of the franchisee income at regular intervals
Capitation offers a predictable income for the farmers, land owners, the frachisors, in order to encourage increase production and predictable income.
Other third parties that provide services and input to the franchisees services are pre-negotiation by the frenachisors for the benefits of the franchisees, the farmers and the land owners.
MAO and all the franchisors provide management monitoring services for the franchisees, the services include but not limited only to financing sources and banking arrangements, but also extension services recruitment and their performance appraisals, and all agriculture input procurements, market information, and weather information. We shall pursuit water and irrigation outsourcing and management for the benefit of the franchisees’ operation.
MANAGED AGRICULTURE ORGANIZATION
MAO is committed to keep Farmers and Land Owners including their associated franchisee owners informed about the programs and compensation structures. The compensation structures will be determined annually from the State level of the Franchise schemes. The compensation structures will be based on and intended to emphasize maximization of production output with pre-calculated amount of inputs and services to ensure appropriate cost-effectiveness of the production. The productions franchise centers operational models are based on matrix organization structure. We base our philosophy of utilization of that management decisions, to encourage and promote appropriate utilization of production inputs and to discourage underutilization of services and inputs for a maximum outputs.MAO encourages maximization of income for the production franchise center ownerships by increase of land size, specialization, and diversities of commodities production.
BONUSES AND INCENTIVES
The franchisors, extension officers, technical and labor services providers, farmers and the land owners may receive additional payment based on production amounts. The total land under the franchise center, diversification, and specialized markets of production may accrue bonuses. The linkages of government programs for the benefit of the franchisees, may accrue bonuses for the franchisorsPER DIEM
The land owners who are also farmers, technical and labor services providers, farmers who are not land owner, may receive a specific amount per day. The per diem payment may vary base on land size and labor input. This is to encourage maximum production and participation of more farmers under the franchise scheme. It must be noted that these bonuses are independent of the rental costs of land to the franchisees