Farmland Rental Rate Information
What is fair farmland rent, will be the focus of several fall meetings in person across the state. Landlords, farmers and agri-business professionals should make plans to attend one of the informative fair farm rental agreement meetings being held across Minnesota. 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 a challenge in today’s economy with current high corn and soybeans prices in 2022.
Negotiating a fair rental agreement that satisfies the landowner and the farmer is a challenge. David Bau and Nathan Hulinsky, Extension educators in Ag Business Management, will provide several ways, including examples, factsheets 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. 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.
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 virtual 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 percent.. The USDA Minnesota statewide averages from 2021 to 2022 farmland rents increased by 4.5% . The two estimates are both close to 4.5%. This could be one way to plot a trend for 2023 rents.
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