We see that you have javascript disabled. Please enable javascript and refresh the page to continue reading local news. If you feel you have received this message in error, please contact the customer support team at 1-833-248-7801.

ADVERTISEMENT

ADVERTISEMENT

Extension offers farmland rental rate information

Negotiating a fair rental agreement that satisfies the landowner and the farmer is a challenge.

dave bau.jpg
David Bau
We are part of The Trust Project.

WORTHINGTON — Discussion about what a fair farmland rental rate is will be the focus of several fall meetings across the state. Landlords, farmers and agri-business professionals should make plans to attend one of the informative meetings being offered.

MORE AGRICULTURE NEWS
Becker Transports of Wadena, Minnesota, started in with a 1985 Mack Superliner bought in 2010. A dozen years later, that ‘85 Mack is still putting in the miles as Becker Transport has grown into a regional trucking company, hauling loads like farm machinery, construction equipment, gravel and grain across the upper Midwest.
The North Dakota Mill and Elevator opened its doors in Grand Forks on Oct. 20, 1922, after several decades of attempts by farmers to halt the hold the grain trade had on pricing and grain grading.
With the increasing need for vets in rural America, Dr. Erin Christ decided to open her own vet clinic in Ellendale, North Dakota.

These free meetings are organized by the University of Minnesota Extension. Farmland rental rates are the largest input cost the farmer has. Determining a fair farm rent agreement is a challenge in today’s economy with the current high corn and soybeans prices.

Negotiating a fair rental agreement that satisfies the landowner and the farmer is a challenge.

I, along with Nathan Hulinsky, Extension educators in Ag Business Management, will provide several ways, including examples, fact sheets and worksheets, to determine a fair farmland rental rate for both parties.

Topics covered at the meetings will include local historic and projected farmland rental rate trends, current farmland values and sales, and a worksheet that will help determine a fair rental agreement. Input costs for 2022 will be presented along with current 2022 corn and soybean prices.

ADVERTISEMENT

Worksheets will examine 2023 costs, affordable rent rates for farmers, the rate of return to the landlord at current market values, and examine flexible rental agreements.

MORE NOBLES COUNTY NEWS
Ettinger will be at the Worthington Event Center at 6:30 p.m. to answer questions from the public.
“We’re dumbfounded,” said Mark Loosbrock, secretary/treasurer of Lismore Cooperative Telephone Company, which spearheaded the project. “They had maps that our engineers, that nobody had. That’s why that money got denied.”
The deadline to apply is 5 p.m. Oct. 14.

The schedule for workshops can be found in October at extension.umn.edu. Attendees will receive several informative worksheets and factsheets that will help to determine what is a fair 2023 farmland rental rate.

After the in-person farmland rental rate workshops, there will be several online sessions. Starting in January 2023 there will be several sessions offered virtually across the state.

The majority of the materials presented at the workshops can be found at https://extension.umn.edu/business/farmland-rent-and-economics . Here you can find a statewide map with rental rates recently updated with 2021 and 2022 county rents, a spreadsheet by county of cropland rental rates and worksheets for landlords and farmers to fill out to help determine what a fair rental rate is for 2023 for farmland or pasture.

Trends from FINBIN database show Minnesota rents increased from 2020 to 2021 by 4.6%. The USDA Minnesota statewide averages from 2021 to 2022 farmland rents increased by 4.5%. This could be one way to plot a trend for 2023 rents.

David Bau is a University of Minnesota Extension Farm Business Management specialist.

What to read next
For incidents recorded the evening of Sept. 30 through the early morning of Oct. 4.
Three candidates are on the ballot for the Nov. 8 election
Worthington's hosting of the Minnesota Governor's Pheasant Hunting Opener next week is anticipated to draw lots of media attention, and hopefully some success in the field for Gov. Tim Walz and Lt. Gov. Peggy Flanagan.
As of Tuesday, the YMCA returned to normal operating hours, with the exception of the indoor swimming pool.