University of Minnesota Extension
www.extension.umn.edu
612-624-1222
Menu Menu

Extension > Agricultural Business Management News > What is a Fair Farm Rental Agreement? (SW Minnesota)

Monday, October 24, 2016

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 profitable rental agreement.  Input costs for 2017 will be presented along with current 2017 corn and soybean prices.  Worksheets will examine 2017 costs and what is affordable rent that a farmer will be able to pay in 2017, the rate of return to the landlord at current market values and examine flexible rental agreements.

Make plans to attend one of these meetings now.  Attendees will receive several informative worksheets and factsheets that will help to determine what is a fair 2017 farm land rental rate is.

The meetings held in Southwest Minnesota include:

November 7, 2016 at 9:00 am 
Murray County Fairgrounds 4-H Building, 3048 S. Broadway Ave., Slayton, MN 56172

December 2, 2016 at 9:30 am
Emergency Service Building, 811 5th St., Pipestone, MN 56164

December 7, 2016 at 9:30 am
Extension Regional Office, 1527 Prairie Drive, Worthington, MN  56187

Make plans to attend a farmland rental workshop this fall for current numbers.  Check out the Agricultural Business Management calendar for schedule of the all 45 rental workshops at across the state at: www.extension.umn.edu/agriculture/business/ for specific times and locations.

No comments:

Post a Comment

  • © Regents of the University of Minnesota. All rights reserved.
  • The University of Minnesota is an equal opportunity educator and employer. Privacy