Agricultural Business Management News

by Dave Bau, Extension educator Harvest is in full swing and yields really vary across the region and state. With a drought in place throughout most of the summer, Minnesota farmers have been left to wonder exactly what their yields will be. On top of the drought, many farmers received strong winds which caused harvesting issues when the corn broke or laid flat. While many will receive lower yields, some farmers will receive average or above average yields.   Here are a few examples. My estimated production costs per acres for 2021 were at $750 per acre for corn and $517 for soybeans, assuming land rent at $220 per acre. I will use the last five crop year averages for Cottonwood County of 188 bushels per acre for corn and 55 bushels per acre of soybeans from the USDA. For price, I will use the average price from Meadowland Farmers Coop for the past 11 months where one of my marketing groups met. The average corn price was $4.45 and soybean $11.56. Taking these prices multiplied by aver

By Dave Bau, Extension educator Landlords, farmers and agri-business professionals should make plans to attend one of the informative in-person meetings being held across Minnesota in November and December. These free meetings are being provided by the University of Minnesota Extension. Farmland rental rates are the largest input cost the farmer has. Determining a fair farm rent agreement is always challenging. 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 use examples, factsheets and worksheets to teach attendees how to determine a fair farmland rental rate for both parties. Visit Extension's land rent page  for the complete schedule of dates and locations of the workshops. Attendees will receive several informative worksheets and factsheets that will help to determine what is a fair 2022 farmland rental rate is. Some in-person locations will requir