Skip to main content

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. Farmer profits are low or negative and farm land rental rates declined slightly while commodity prices have decreased significantly. 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 as recently as 2012 but commodity prices continued to decline since then.

Negotiating a fair rental agreement that satisfies the land owner and the farmer is a challenge. David Bau and Nathan Hulinsky, Extension Educators in Ag Business Management, will provide several ways; by examples, fact sheets 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 rental agreement. Input costs for 2018 will be presented along with current 2018 corn and soybean prices. Worksheets will examine 2019 costs and what is affordable rent that a farmer will be able to pay in 2019, the rate of return to the landlord at current market values and examine flexible rental agreements.

Make plans to attend one of these forty meetings now. Attendees will receive several informative worksheets and fact sheets that will help to determine what is a fair 2019 farm land rental rate is.

The meetings will be held in Ada, Albert Lea, Alexandria, Albert Lea, Bagley, Benson, Blue Earth, Buffalo, Caledonia, Chaska, Cologne, Crookston, Elko New Market, Faribault, Farmington, Foley, Gaylord, Hutchinson, Jordan, Le Center, Litchfield, Little Falls, Long Prairie, Madison, Mankato, Melrose, Morris, Olivia, Owatonna, Pipestone, Preston, Red Lake Falls, Rochester, St. Charles, St. Peter, Slayton, Sleepy Eye, Waseca, Willmar, and Worthington starting November 13 in Long Prairie and Little Falls and ending in Litchfield and Buffalo December 19, 2018. Check out the Agricultural Business Management calendar on the web at: extension.umn.edu/business/ag-business-management-event-offerings for specific times and locations.
Print Friendly and PDF

Comments