# Your First 90 Days After Buying a Sod Farm

By David Lapham

Your first 90 days after buying a sod farm should establish control of the operation while keeping commitments to customers and employees. Start with a closing-day record of open orders, deposits, field conditions, water authority, equipment problems and account access. Give each unresolved item a responsible person, a deadline and a way to prove it is finished.

I would measure a successful transition by whether the buyer can make sound daily decisions without repeatedly calling the seller. That includes knowing which grass can be cut, who can authorize irrigation, what customers have already paid and how the next payroll will run.

The sequence below is a planning framework. Regulatory deadlines and safety requirements may come sooner, and the purchase agreement determines what actually transfers.

## Start with one handover record and one decision maker

The buyer should appoint a transition lead with authority to coordinate the office, field manager and advisers. If the buyer is a land investor hiring an operator, name that operator and define the decisions reserved for ownership. The seller’s knowledge remains useful, but employees need a clear answer about who directs their work after closing.

Use one transition register: item, buyer owner, seller contribution, dependency, due date, evidence and status. A dependency is something that must happen before the next action can safely proceed. For example, a dispatch plan depends on available crop, field access, an authorized crew and working equipment.

Keep the seller’s help within the agreed transition arrangement: availability, meetings, introductions, training, compensation and an end date. Record which decisions the seller may advise on and which require buyer approval. Do not assume the seller remains on call indefinitely.

Have counsel turn the signed transaction documents into a short operating summary: acquired assets, assumed obligations, excluded items, required consents and unresolved adjustments. An asset purchase and a purchase of the existing company can produce different account and employment handovers. [SBA’s acquisition guidance](https://www.sba.gov/counseling/grow-your-business/) explains that the agreement, business structure and state law shape the transfer steps.

| Period | Buyer’s priority | Evidence that the handover works |
| --- | --- | --- |
| Closing through day 3 | Establish authority and protect tomorrow’s work | Agreed cutoff records, working access, crew briefing and approved next-day schedule |
| Days 4–14 | Run complete operating cycles with seller support | Orders traced through harvest, delivery, payment and exceptions; first payroll checked |
| Days 15–30 | Reconcile the opening position | Deposits, receivables, supplier balances and field records matched to supporting documents |
| Days 31–60 | Remove remaining dependence on the seller | Buyer team handles normal decisions and documented exceptions |
| Days 61–90 | Accept the handover and set improvement priorities | Open issues assigned, ongoing responsibilities confirmed and seller support concluded as agreed |

The [standing sod closing schedule](/insights/standing-sod-inventory-at-closing) documents the crop, orders and deposits that should feed this handover.

## Closing through day 3: protect the next working day

Before the first buyer-directed shift, confirm safe equipment, authorized water use, working dispatch and payroll access, fuel and other immediate supplies, and the next customer commitments. The later sections describe the full follow-through on these checks; their dates are not permission to postpone something needed for tomorrow’s work.

### Reconcile orders and customer deposits

Take a dated snapshot of open orders. Include order ID, customer, variety, quantity and unit, agreed price, requested date, pickup or delivery, location, credit terms, deposit, remaining balance and any special promise. Separate confirmed orders from quotations and forecasts.

Match deposits to bank or processor evidence and individual orders. Identify which entity received each payment, who must fulfill or refund it, and how the closing documents settle that obligation. A customer deposit is money received before the related order is completed; it can leave work and costs for the buyer even when the seller received the cash.

Do not automatically move old receivables into the buyer’s collection account. Keep preclosing deliveries, postclosing deliveries, credits, refunds and cash received on the wrong side of closing separately traceable. Let the transaction documents and accountant determine the settlement and accounting treatment. The operating schedule must still tell the office what to do when the customer calls.

### Tell employees who is responsible and how pay will work

Meet the crew before the first buyer-directed shift. Explain the supervisor, reporting time, pay contact, timekeeping method, emergency contact and process for raising a problem. Confirm individual employment arrangements privately rather than announcing promises the buyer has not approved.

Check the payroll funding date, bank authorization, employee details, benefit arrangements and responsibility for wages earned across closing. Arrange required insurance coverage to take effect without a gap. Obtain advice on transaction-specific hiring, employment eligibility, leave and benefit issues before employees work under the new arrangement.

Have the payroll adviser confirm the employing entity and tax accounts. The [IRS rules for a new EIN](https://www.irs.gov/businesses/small-businesses-self-employed/when-to-get-a-new-ein) depend on entity structure and the change involved. Resolve Form I-9 handling under the applicable [employment-verification rules](https://www.ecfr.gov/current/title-8/chapter-I/subchapter-B/part-274a/section-274a.2). Neither question should be decided by copying the seller’s account settings.

### Walk the fields with the people who make decisions

Use the same field IDs in the map, crop inventory, harvest schedule, irrigation records and pesticide records. If the buyer wants new names, retain a crosswalk between old and new IDs.

Record variety, planted area, recent cutting or planting, present condition, committed orders and the field manager’s estimated next availability. Label estimates as estimates and date the observation. Walk questionable areas instead of treating a spreadsheet quantity as permission to harvest.

Carry forward current pesticide application information and field-entry restrictions immediately. For covered agricultural operations, [EPA’s Worker Protection Standard](https://www.epa.gov/pesticide-worker-safety/agricultural-worker-protection-standard-wps) addresses safety training, application and hazard information, entry restrictions, decontamination and emergency assistance. A new ownership announcement does not replace these operational protections.

## Days 4–14: prove that the farm can run under the buyer

### Contact customers with a specific service message

Use seller introductions where agreed, starting with customers who have imminent orders, deposits, unresolved claims or important recurring work. Confirm the next order, dispatch contact, invoicing entity and approved payment instructions. Ask what the customer believes the farm has promised; compare that answer with the order record.

Keep a call log of confirmed commitments and open questions. A friendly introduction does not establish consent to a contract assignment or guarantee future purchases. Refer disputed terms to the person authorized to resolve them.

Verify any new bank or payment instructions through an independently known phone number. The [FBI’s business email compromise guidance](https://www.fbi.gov/how-we-can-help-you/common-frauds-and-scams/business-email-compromise) specifically recommends verifying account-number and payment-procedure changes. Apply the same control when suppliers send new remittance details.

### Transfer access and test the recovery path

Inventory email, domain registration, phone numbers, accounting, payroll, banking, payment processing, order software, cloud storage, fuel accounts, security systems and irrigation controls. Include physical keys, gate codes, radios, equipment keys and alarm contacts.

For each account, record the legal owner, administrator, billing contact, recovery method, approved users and transfer status. Some services require a new account or provider consent. A password alone does not establish ownership or a right to use a subscription.

Set up buyer-controlled administration, individual permissions and multifactor authentication where available. Test a backup restore or usable export of essential records. [NIST’s small-business guidance](https://www.nist.gov/itl/smallbusinesscyber/cybersecurity-basics) supports MFA, strong passwords and protected, tested backups.

Test buyer and backup access before removing the seller’s access according to the agreed handover. Replace shared credentials securely, update recovery contacts and remove obsolete permissions. Keep passwords out of the general transition register. Retain the seller’s records and any agreed access rights through an authorized arrangement.

### Complete several real orders end to end

Follow selected orders through availability confirmation, harvest release, loading, delivery or pickup evidence, invoicing, deposit application and collection. Include a partial order, changed delivery date or legitimate credit when one occurs.

Hold a short daily review of exceptions. Who can promise another load? Who approves a refund? Who decides a field is too wet to cut? Record the buyer’s authority and escalation route so the crew receives one consistent instruction.

## Days 15–30: reconcile water, suppliers and service needs

### Confirm who may pump and who decides when to irrigate

Water authority must be resolved before the buyer relies on pumping, even though the broader records review may continue through the first month. Put the permit, transfer status, conditions, reporting calendar and district correspondence beside the irrigation map. Identify wells, meters, pumps, controls, power accounts and access rights, along with the person responsible for each reporting obligation.

For example, the [Southwest Florida district transfer form](https://www.swfwmd.state.fl.us/sites/default/files/medias/documents/22_-_LEG-R.002.05_OT_FORM.pdf) states a 30-day application deadline after acquiring ownership or legal control. It also warns against withdrawals before transfer or issuance in the transferee’s name. That deadline is not permission to pump while waiting. Other districts have their own requirements; obtain confirmation for the actual permit and operating arrangement.

Do not inherit the seller’s timer settings as a permanent irrigation plan. Have the responsible operator review current crop stage, soil moisture, water-table information where relevant, weather, system condition and permit constraints. Record who can change settings and what happens when an alarm, outage or failed pump occurs.

The [2024 Florida Sod Operations BMP manual](https://www.fdacs.gov/content/download/25407/file/sod-operations-bmp-manual-2024-edition.pdf) covers production-specific irrigation decisions and records. It also identifies ownership or property-control changes as affecting enrollment validity. For an enrolled Florida operation, contact FDACS about the buyer’s enrollment and preserve the applicable historical records. This is separate from the water-use permit transfer.

### Confirm suppliers before the next urgent purchase

Call the fuel, fertilizer, chemical, pallet, freight, electric, equipment-parts and repair contacts the operation actually uses. Confirm the account holder, credit approval, ordering authority, delivery access, outstanding purchase orders and responsibility for old invoices. Check leased equipment, rented tanks and other assets that may belong to a supplier.

Record the next delivery and the consequence of a delay. A new buyer may need an approved account before an order can ship. Do not assume the seller’s trade credit, discounts or personal guarantees transfer.

### Turn the maintenance backlog into scheduled work

List each critical machine by asset ID, model, serial number, hours or mileage, last service, known defect, next service and responsible technician. Include pumps and backup equipment alongside harvesters, tractors, mowers, forklifts and trucks.

Separate unsafe equipment from routine service and longer-term replacement decisions. A qualified person should address safety defects before release to work. Use equipment-specific manuals and authorized servicing procedures. [OSHA’s agricultural equipment standard](https://www.osha.gov/laws-regs/regulations/standardnumber/1928/1928.57) addresses guarding, safe-operation instruction and servicing precautions; receiving the keys is not evidence that someone can safely repair the machine.

Book necessary service, verify parts availability and identify a realistic interruption plan. Leave a major replacement investment for a documented decision unless condition or capacity makes action urgent.

For the underlying Florida authorization investigation, use the [water permit diligence guide](/insights/florida-sod-farm-water-permit-diligence).

## A worked deposit handover worksheet

This fictional example illustrates execution only. Assume an asset purchase in which three undelivered orders transfer with customer consent where required. The buyer assumes their fulfillment or refund obligations. The agreement gives the buyer a single $9,000 purchase-price credit for deposits previously collected by the seller. There is no separate cash transfer, and the credit is not counted again elsewhere.

Assume no freight, tax, discounts or other charges for this illustration.

| Order | Agreed order value | Seller collected | Buyer may collect after fulfillment |
| --- | ---: | ---: | ---: |
| A | $8,000 | $3,000 | $5,000 |
| B | $5,000 | $5,000 | $0 |
| C | $4,000 | $1,000 | $3,000 |
| Total | $17,000 | $9,000 | $8,000 |

The office loads the orders with their existing deposits. It does not ask B for another $5,000 or treat the seller’s $9,000 as new buyer cash receipts. The buyer still needs operating cash to complete the work; a closing credit reduces the purchase payment but does not collect an invoice.

Now assume A is delivered, B cancels under terms allowing a full refund, and C remains open. The buyer receives $5,000 from A and refunds B’s $5,000. Net new customer cash is $0. Of the original deposits, $3,000 has been applied to A, $5,000 refunded for B and $1,000 remains attached to C: $9,000 accounted for. C’s potential future balance is still $3,000.

The office manager matches delivery and refund evidence; the buyer approves the refund; the seller confirms the original receipts; the accountant reconciles the opening entry and closing credit. This example does not prescribe revenue recognition or tax treatment.

Use these fields for each live handover item:

- **Responsibility:** buyer owner, seller contribution and backup person.
- **Dependency:** consent, record, funding, access or field confirmation needed first.
- **Commitment:** customer promise, balance, deadline and next action.
- **Proof:** receipt, delivery ticket, refund confirmation or accepted account transfer.
- **Escalation:** who decides when the documents and operating facts disagree.

## Days 31–90: finish the handover and choose improvements

By day 30, reconcile the opening order and deposit schedules to actual deliveries, refunds and balances. Check the first payrolls, supplier statements, bank activity, equipment work orders and required filings. Keep accurate time and wage records; [DOL’s recordkeeping guidance](https://www.dol.gov/general/topic/wages/wagesrecordkeeping) describes federal requirements for covered workers. Confirm applicable agricultural and state rules with the payroll adviser.

Keep record-retention duties distinct. For example, [USDA’s federal restricted-use pesticide recordkeeping guidance](https://www.ams.usda.gov/rules-regulations/pesticide-records/understanding) generally specifies two years for certified private applicators’ covered records, subject to the applicable state system. Florida’s sod BMP manual specifies at least five years for applicable BMP records. Changing software or field names should not erase either history.

During days 31–60, have the buyer’s team run the normal schedule while the seller observes within the agreed support role. Work through actual exceptions with the buyer making the decisions. Update procedures when a missed instruction or missing record becomes visible. Name backups for irrigation, dispatch, payroll and urgent repairs.

During days 61–90, review every open transition item. Record what was accepted, what remains disputed and who owns the next action under the agreement. Confirm deadlines and access arrangements that continue after seller support ends. An unresolved permit, missing refund or unsafe machine does not become acceptable because 90 days have elapsed.

Then rank improvements using the operation you have observed: service reliability, record accuracy, crop condition, repair needs and cash commitments. Change pricing, software, irrigation equipment or the variety plan with a defined purpose and responsible person.

Once the buyer's team is settled, the [two-week owner absence exercise](/insights/sod-farm-without-owner) offers a practical way to test delegation and backup coverage.

## Questions buyers ask about the first 90 days

### Should the seller stay for all 90 days?

Only if the agreed role and the farm’s needs justify it. Specify the tasks, availability, compensation, decision limits and finish criteria. Ninety days is a planning window, not a standard consulting term.

### Can I keep using the seller’s accounts and permits?

Confirm each one individually. Ownership structure, provider terms, legal permissions and agency rules control the answer. Test authorized buyer access and resolve operating authority before relying on them.

### What should I change first?

Address unsafe work, unclear operating authority, payroll gaps and commitments at risk. Then improve the specific failures revealed by real orders and field decisions. I would avoid redesigning several important systems at once during an already demanding handover.

If you are planning an acquisition, [tell me what kind of sod farm you want to buy](/find-me-a-sod-farm). A useful purchase plan includes the people, records and operating responsibilities the buyer needs after closing.

## Sources and further reading

- Business transfer and payroll setup: [SBA acquisition guidance](https://www.sba.gov/counseling/grow-your-business/), [IRS EIN rules](https://www.irs.gov/businesses/small-businesses-self-employed/when-to-get-a-new-ein) and [DOL recordkeeping](https://www.dol.gov/general/topic/wages/wagesrecordkeeping).
- Florida operations: [FDACS sod BMP manual](https://www.fdacs.gov/content/download/25407/file/sod-operations-bmp-manual-2024-edition.pdf), [Southwest district transfer form](https://www.swfwmd.state.fl.us/sites/default/files/medias/documents/22_-_LEG-R.002.05_OT_FORM.pdf) and the separate [Northwest district form](https://nwfwater.com/content/download/7070/52543/Form.163_Permit_Transfer_Form_2014.05.29-F.pdf).
- Worker and equipment handovers: [EPA Worker Protection Standard](https://www.epa.gov/pesticide-worker-safety/agricultural-worker-protection-standard-wps), [USDA pesticide records](https://www.ams.usda.gov/rules-regulations/pesticide-records/understanding), [employment verification regulation](https://www.ecfr.gov/current/title-8/chapter-I/subchapter-B/part-274a/section-274a.2) and [OSHA farm equipment standard](https://www.osha.gov/laws-regs/regulations/standardnumber/1928/1928.57).
- Account and payment controls: [NIST cybersecurity basics](https://www.nist.gov/itl/smallbusinesscyber/cybersecurity-basics) and [FBI payment-fraud guidance](https://www.fbi.gov/how-we-can-help-you/common-frauds-and-scams/business-email-compromise).