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Showing posts from January, 2016

Southwestern Minnesota Farmland Values Decline 8 Percent in 2015

By David Bau, Extension Educator

At the end of each year for the last twenty-one years, a survey has been conducted of farm land sales in fourteen southwestern Minnesota counties. Land values had 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.  This trend continued in 2015.  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 8.3%.  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 then declined in 2014 and again to $6,929 in 2015.

Data from these counties indicat…

Farm Resource Guide Available

By David Bau, Extension Educator

The Farm Resource Guide for 2016 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.  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, including examples of Manure Spreading Lease and Land…

Where should 2016 Farmland Rental Rates be?

By David Bau, Extension Educator

The answer to the question depends upon who is answering.  Landlord property taxes continue to increase while farmer’s profit margins have turned negative.  The agribusiness management team just completed a state tour completing 47 workshops on what is a fair farmland rental agreement.  It seems this year determining what is fair, is a very challenging process.

There were a lot of frustrated people in the workshop audiences, with a composition of two-thirds landlords and one-third farmers.  Neither party is happy with the current situation and with the economics in farming.   What the farmer can afford to pay for rent and what landlords want to receive for rent.

Good times occurring in the recent past are still on many landlord’s minds, while the current low prices offered for 2016 are on the farmer’s mind.  Through the first nine months of 2015 the average cash price in Worthington for corn was $3.52 and soybeans $9.32 continuing the change to lower…