By David Nicolai, Extension Educator-Crops
University of Minnesota Extension
What is a Fair & Profitable Farm Rental Agreement?
Landlords, Farmers, Agri-Business Professionals should make plans to attend one of the informative meetings being held across Minnesota. These free meetings are being provided by the University of Minnesota Extension. Farm land rental rates have started to lower as corn and soybean prices continue lower in 2016. Determining a fair farm rent agreement is a challenge in today’s economy with current significantly lower corn and soybeans prices in 2016 compared to recent record corn and soybean prices and record farm land values.
Negotiating a fair rental agreement that satisfies the land owner and the farmer is a challenge. Gary Hachfeld, Extension Educator in Ag Business Management, will provide several ways; by examples, factsheets 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 2017 will be presented along with current 2017 corn and soybean prices. Worksheets will examine 2017 costs and what is affordable rent that a farmer will be able to pay in 2017, the rate of return to the landlord at current market values and examine flexible rental agreements.
Make plans to attend one of these meetings now. Attendees will receive several informative worksheets and factsheets that will help to determine what is a fair 2017 farm land rental rate is.
The meeting will be held in locally at: Dakota County Extension & Conservation Center, 4100 220th Street West, Suite 101, Farmington, Minnesota on Wednesday, November 30, 2016 beginning at 9:30 a.m.
