Tricounty News

What is a fair and profitable farm rental agreement

Landlords, farmers, and agri-business professionals should make plans to attend one of the informative land rental meetings being held across Central and Southern Minnesota. These free meetings are being provided by the University of Minnesota Extension. Farm land rental rates have never been higher and determining a fair and profitable farm rent agreement is a challenge in today’s economy with volatile corn and soybean prices and record farm land values.

Negotiating a fair rental agreement that satisfies the land owner and the farmer is not an easy task. David Bau, Extension Educator in Ag Business Management, will discuss several ways 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, and a worksheet that will help determine a fair and profitable rental agreement. Projected input costs for 2014 will be presented along with current 2014 corn and soybean prices. Examples will use 2014 costs and returns to calculate affordable rental rates for farmers and acceptable rates of return to the landlord at current land values. Flexible cash rental agreements will also be examined.

Make plans to attend one of these meetings now. Attendees will receive several informative worksheets and factsheets that will help determine a fair and profitable 2014 farm land rental rate.

There are 25 workshops that will be held in Albert Lea, Alexandria, Austin, Buffalo, Chaska, Cold Spring, Foley, Gaylord, Gibbon, Hutchinson, Jordan, Lake Crystal, Le Center, Litchfield, Little Falls, Long Prairie, North Mankato, Pipestone, Rochester, St. Peter, Slayton, Sleep Eye, Willmar and Worthington starting in Chaska and Jordan Nov. 6, and ending in Long Prairie and Little Falls Dec. 11.
The schedule can be found at: http://blog.lib.umn.edu/efans/abmnews/2013/10/worshop-what-is-a-fair-and-pr.html.