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Showing posts from February, 2018

To Rent or Not to Rent??

By David Bau, Extension Educator

Farmland rental rates have remained high even though grain prices have gone down significantly.  As grain prices rose farmland rental rates were slow to increase. When grain prices started to fall in 2013, farmland rental rates started to decline, but at a much slower pace than grain prices.

The average cash prices for corn and soybeans in 2012 in Worthington were $6.82 for corn and $12.64 for soybeans.  The average price of corn declined each year since while soybean prices peaked with an average price of $13.99 in 2013. From 2012 through 2016, corn prices declined by 54.5% and soybean prices by 27% , while average rents paid by southern Minnesota in adult farm management programs declined from a peak of $243.47 in 2013 to $226.85 in 2016 or 7%.  Corn and soybean prices declined by an average of 41% and if this was applied to 2013 average rental rates the average rate in 2016 would calculate to $143.65.

Many rents are still above $200, $250 and higher…