MEDIA RELEASE
November 14, 2002
Written By Kent Thiesse, U of M Extension Service
(507-389-8141)
Land Rental Rates Projected To Be Steady For 2003
The University of Minnesota Extension Service has recently completed its annual Land Rental survey in South Central Minnesota for 2002-2003. The Survey includes eleven counties in South Central Minnesota, and represents over 2600 responses from Landlords and Farm Operators in the participating counties. There are over 330,000 acres of tillable farm land that are under cash rental agreements represented in the Survey results. Many of the Counties had adequate data to break the rental trends down to the township level. The results of this annual land rental survey are meant to indicate trends in land rental rates and not to fix or set annual cash rental rates, according to Kent Thiesse, University of Minnesota Extension Educator.
Thiesse indicated that the cash rental rate trends in most counties appear to be steady to up slightly, when comparing actual rental rates in 2002 to the expected rates for 2003. Most counties showed an increase of one percent or less in expected annual rental rates for 2003, compared to 2002 rates. Thiesse said the highest average rental rates listed in the region for 2002 were $111.45 per acre in Nicollet County, $109.59 per acre in Faribault County, and $109.39 in Waseca County. Lowest average rental rates were $92.67 per acre in Scott County and $95.20 per acre in Carver County. The average cash rental rate listed for Blue Earth County for 2002 was $105.23 per acre. The range in cash rental rates in the region is from $50.00 to $160.00 per acre.
Thiesse says that land quality, available drainage, and local demand for land are big factors that determine local rental rates. For example in Blue Earth County, land that is well-tiled brings an average rental rate of $6.00 per acre higher than the county average of $105.23 per acre, while land with very poor drainage is discounted $10.00-$15.00 per acre. Some higher land rental rates may also include the use of facilities owned by the Landlord, such as grain bins or machinery storage.
The Extension Service in South Central Minnesota has completed its annual "Land Rental Survey Booklet" for 2002 - 2003. The booklet contains actual cash rental rates paid in 2002, projected rental rates for 2003 for eleven counties, as well as rental trend data for flexible leases, share rental arrangements, rental agreements with family members, the impact of tile drainage on rental rates, and other information. The Booklet also contains historical land rental trend data, a cash rent worksheet for 2003, factors influencing cash rental rates, as well as information sheets on government farm programs, flexible lease agreements, sample rental contracts, property tax adjustments, agricultural drainage, building rentals, and more.
For a free copy of the 2002-2003 "Land Rental Survey Booklet", please access the Blue Earth Extension Service web site at : http://www.extension.umn.edu/county/blueearth/
A printed version of the "Land Rental Survey Booklet" is available from any of the listed County Extension Offices at a cost of $3.00 per copy. The Booklet will also be mailed out at a cost of $5.00 per copy. Please contact the Blue Earth County Extension Office for more details (507-389-8325).