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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 budgets for 2015 and 2014, utilizing the FINBIN data base.

• Average Cropland Rental Rates with projections for 2014 and 2015 from FINBIN data base.

• 2015 and 2014 Minnesota cropland and pasture rental rates come from the Minnesota Agricultural Statistic Service publication on cash rent which is released in September each year.

• Flexible land rental agreement information can help to share the risk and reward between the farmer and the landlord.

• Southwest Minnesota Crop Budgets for 2015 and 2014 provide examples of input costs.

• Ag Lease 101 is a link to vast amount of information about rental agreements and lease forms you can fill out online.

• Minnesota land economics link is a one stop source for land data in Minnesota.

• Cropland rental rates for Minnesota counties, lists rental rates paid by farmers over the past five years by county using FINBIN database.

• 2015 & 2014 Operator's cash rent worksheet are Excel worksheets for farmers to calculate what they can afford to pay for rent.

• 2015 & 2014 Landowner's rent worksheet is for landlords to use to calculate what they want for rent based on land values.

• Southwest Minnesota farmland sales 2002-2012 lists Land Sales for bare farmland in southwest Minnesota to Non-Related parties from 2002 through 2012.

Can farmland rents continue the increasing trend in 2015? The projected 2015 corn and soybean total income and expenses would indicate a loss at current cash forward contract prices available using historic yields and 2014 rents. If prices increase or farmers are able to get better yields in 2015 than projected, it would be possible to pay these trending higher rental rates, but based on the current corn and soybean prices for 2015, there is a real potential for farmers to lose money. If this occurs, it should cause lower or flat farmland rental rates in 2015 as compared to 2014.