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Showing posts from October, 2016

USDA Average County Rents Published in September

By David Bau, Extension Educator

The National Agricultural Statistic Service with the USDA released the county farmland rental rate estimates for 2016.  After increasing continuously since 2007, statewide average rents went down for the second year in a row. The state average cropland rental rates declined from $185 in 2014 to $180 in 2015 to $170 in 2016 as indicated in Chart 1 below. This represented a 5.5% decrease from 2015 to 2016 and 2.7% decrease from 2014 to 2015.  Previously rental rates had a 4.5% increase from 2013 to 2014, 18% from 2012 to 2013 and 11.1% from 2011 to 2012. Statewide Irrigated rental rates declined from $210 in 2015 to $185 in 2016 almost a 12% drop. Pasture rent average increased from $26 per acre in 2014 to $28 per acre in 2015 to $30 in 2016 or an increase of 7.1%.
Table 1 below lists the actual farmland rental rates by county from Adult Farm Management Records. Since farmers and landlords are starting to negotiate 2017 farmland rental rates and the last…

What is a Fair Farm Rental Agreement?

By David Bau, Extension Educator

Landlords, Farmers, Agri-Business Professionals should make plans to attend one of the informative meetings being held across Central and Southern Minnesota. These free meetings are being provided by the University of Minnesota Extension.  Farm land rental rates have never been higher and determining a fair profitable farm rental agreement is a challenge in today’s economy with recent record corn and soybean prices and record farm land values and current significantly lower price for 2014, 2015, 2016 and 2017.

Negotiating a fair rental agreement that satisfies the land owner and the farmer is a challenge.  David Bau, Extension Educator in Ag Business Management, will provide several ways; by examples, factsheets and worksheets to determine a fair farm land rental rate for both parties.

Topics covered at the meetings will include local historic and projected farmland rental rate trends, current farm land values and sales, a worksheet that will help dete…

What is a Fair Farm Rental Agreement? (SW Minnesota)

by David Bau, Extension Educator

Landlords, Farmers, Agri-Business Professionals should make plans to attend one of the informative meetings being held across Central and Southern Minnesota.  These free meetings are being provided by the University of Minnesota Extension.  Farm land rental rates have never been higher and determining a fair farm rental agreement is a challenge in today’s economy with recent record corn and soybean prices and record farm land values and significantly lower prices since 2014.

Negotiating a fair rental agreement that satisfies the land owner and the farmer is a challenge.  David Bau, Extension Educator in Agricultural Business Management, will provide several ways; by examples, factsheets and worksheets to determine a fair farm land rental rate for both parties.

Topics covered at the meetings will include local historic and projected farmland rental rate trends, current farm land values and sales, a worksheet that will help determine a fair and profitabl…

Cash Flow Statement- Watch Where the Money Goes

By Betty Berning, Extension Educator   


This is it- the last of the financial statement articles.  I promised I would write three:  one for each of the commonly used financial statements on farms.  I am sure some of you are breathing a sigh of relief! If you recall, I’ve written about balance sheets- first article- and income statements- second article.  A balance sheet tracks your assets (cash, land, machinery) and liabilities (loans, mortgages, accounts payable).  An income statement looks at your profitability over time.  For example, your Schedule F from your tax return is an informal income statement because it lists where you received and spent money.  This article will focus on cash flow statement (CFS), the third financial statement.  CFS is precisely that:  a statement that explains the flow of cash in your business.  In other words, how did money move in and out of your business?  Where did your income come from?  What kind of expenses did you have?                 Imagine tha…

MN Livestock Investment Grants Available

Funds for On-Farm Livestock Improvements 

Recently the MN Department of Agriculture (MDA) announced there are $2 million in grants available for improvement projects on MN livestock farms. These funds are available through the Agricultural Growth, Research, and Innovation (AGRI) Program.

Successful applicants are reimbursed 10 percent of the initial $500,000 of their investment. The maximum available per year for a producer is $25,000.

Applications are due by Dec. 16, 2016. Funded projects will need to be completed between Jan. 1, 2017 and June 30, 2018. Complete details of this program, including application documents, can be found on the MDA website.

Financial Help Available For Farmers Impacted By Floods

Updated Disaster Loan Program Available
The Minnesota Rural Finance Authority (RFA) has just released updated information regarding their Disaster Loan Program. Farmers who experienced losses as a result of recent flood conditions can qualify for a zero-interest loan through the RFA. This RFA loan is a participation (or essentially shared) loan with the producer's current lender. The RFA portion of the loan is limited to 45 percent of the principal balance, up to a maximum amount of $200,000. This loan can be used to "replace or repair items lost or damaged due to flooding and not covered by insurance" according to the MN Department of Agriculture News Release.

For more information, farmers should contact their local lender or the MN RFA at 651-201-6004.