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Showing posts from February, 2015

Farm Resource Guide Available

By David Bau, U of M Extension Educator

The Farm Resource Guide for 2015 is now available upon request at many University of Minnesota Extension County offices across the state. It includes a variety of very useful farm business management information. The front of the Guide has the most frequently requested information on Custom Rates, Rental Rates for various ag commodity, forages, bins and buildings, Farmland Sales and Rents and Pasture Rental rates. There are lease forms for Cash Rent and Share Rent arrangements if you order a compact disc or e-mail version. There is flexible rental arrangement information. Marketing information including the cash price probabilities for cash corn and soybeans for Worthington, Minnesota, since 1974. Information from the Southwest Farm Business Management Association includes trends in costs, family living and net worth changes. At the end of the Guide is a section on Feedlot Rule Highlights and information on Manure Agreement and Easements, i…

Farmland Values Decline in 2014

By David Bau, U of M Extension Educator

At the end of each year for the last twenty years, a survey has been conducted of farm land sales in fourteen southwestern Minnesota counties in which land values have been on a steadily increasing until 2014. The survey reports bare farm land sales to non-related parties for the first six months of each year. After reaching record high prices in 2013, the upward trend was broken as prices declined in 2014. Data collected in this survey is available at the county extension offices in Chippewa, Cottonwood, Jackson, Lac qui Parle, Lincoln, Lyon, Martin, Murray, Nobles, Pipestone, Redwood, Rock, Watonwan and Yellow Medicine Counties. This year the decline across the fourteen counties averaged 10.1%. Average land values had not declined since 1996 when the average SW Minnesota land prices were $1,175 per acre in 1995 to a high in 2013 to $8,466.

Data from these counties indicate prices decreased from an average of $8,466 in 2013 to $7,556 in 2014…

Trends for Southwest Minnesota Farmland Rental Rates

By David Bau, U of M Extension Educator

What are the trends in farmland rental rates and where are they going in 2015? I have just completed 45 workshops across the state and asked this question multiple times to each audience. What direction should rents go in 2015? I had three possible answers, they could stay the same, they could go up or they could go down. How you answer this depends on your circumstances.

Many farmers are looking at losses in 2015 for both corn and soybeans, but need to maintain their current farm size and are going to pay the same rate as last year even if it creates a loss at current prices hoping commodity prices will rise. Below is a table showing farmland rental rates in southwest Minnesota. In the FINBIN data base for the last five years from 2009 to 2013 rental rates have increased at a yearly rate of 11.8 percent. Commodity prices started declining from record highs in 2012 and continued lower in 2013 and 2014. The table includes half of this averag…

Where to Find Information for Farmland Rental Rates

By David Bau, U of M Extension Educator

What are the trends in farmland rental rates and where are they going in 2015? There is new improved extension website to find relevant information. Start by going to University of Minnesota Extension's home page, click on "Agriculture" Icon, then "Agricultural Business Management" and then click "Land Economics" Icon. Here you will find a wealth of information including:

• FairRent, a software program where farmers and landlords can enter potential crops to be raised, expected input costs and market prices along with insurance coverage and then will help determine what would be a fair rent.

• "Cropland Rental Rates for Minnesota Counties" publication prepared by Gary Hachfeld, William Lazarus, Dale Nordquist, and Rann Loppnow utilizing the FINBIN data base with historic information from an adult farm management data base can be found here.

• Minnesota corn and soybean budge…