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Extension > Local Extension Offices > Meeker > County Agriculture Educator > Articles > What is a Fair & Profitable Farm Rental Agreement?

What is a Fair & Profitable Farm Rental Agreement?

Source: David Bau, Extension Educator – Agriculture Business Management & Karen Johnson, Extension Educator – McLeod & Meeker Counties

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 2017. Determining a fair farm rent agreement is a challenge in today’s economy with current significantly lower corn and soybeans prices in 2017 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.
David Bau, 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 2018 will be presented along with current 2018 corn and soybean prices. Worksheets will examine 2018 costs and what is affordable rent that a farmer will be able to pay in 2018, 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 a fair 2018 farm land rental rate is.

The meeting will be held in locally at:

  • Cologne on Monday, Nov. 13 at 9:30 AM at Carver County Public Works Building;  11360 US Hwy 212 W
  • Hutchinson on Monday, Nov. 20 at 9:30 AM at Hutchinson Event Center; 1005 Hwy 15 S, Plaza 15
  • Gaylord on Monday, Nov. 20 at 1:30 PM at Sibley County Courthouse Annex Basement; 400 Court Ave
  • Olivia on Wednesday, Nov. 22 at 9:30 AM at County Government Center; 105 South 5th
  • Willmar on Wednesday, Nov. 22 at 1:30 PM at Mid Central Research and Outreach Center; 1802 18th St. NE
  • Buffalo on Monday, Dec. 4 at 9:30 AM at Wright County Court house, Room 120; 10 2nd St. NW
  • Litchfield on Monday, Dec. 4 at 2:00 PM at Meeker County Courthouse, CR A&B; 325 Sibley Ave. N

For dates and times of additional meetings throughout the state, check out the Agricultural Business Management calendar on the web at: http://z.umn.edu/abm

Contacts

David Bau
Extension Educator, Agricultural Business Management
(507) 372-3900
bauxx003@umn.edu
Karen Johnson
Extension Educator, Ag Production Systems
(320) 484-4303
ande9495@umn.edu
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