Farmland rental rates a hot topic

Farmland rental rates a hot topic

By Gary Hachfeld, University of Minnesota Extension

ST. PAUL, Minn. (7/23/2007)- Volatile commodity markets are helping make cropland rental rates a hot topic. If you're interested in cropland rental rates in Minnesota, a new analysis by the University of Minnesota will give you some guidelines.

Land rental rates by county from 2002 through 2006 are included, as are projections for 2007 and 2008 (based on continuation of the historical trend). Visit the U of M Center for Farm Financial Management website at www.cffm.umn.edu. Click on "Cropland Rental Rates for Minnesota Counties."

The land rental rates listed in the analysis are not meant to dictate or determine actual land rental rates. They are simply a listing of the historical land rental data from the years 2002-2006 as reported in FINBIN (farm financial analysis software).

Keep in mind that the rental rates include both family and long-term rental contracts. Rental rates between family members are generally lower than those between un-related parties.

All row crop acres, small grain acres and canning crop acres were included. Not included in the analysis were acres allocated to pasture, aftermath grazing, all hay and haylage acres, CRP acres, fallow and prevented planting acres.

Counties with a minimum of 15 farms reporting land rent data were included in the analysis. For 2006, the highest per acre rental average was Blue Earth County, at $128. The lowest was Kanabec, $32 per acre.

For the 2006 crop year, in addition to the average, the 10th and 90th percentile are included to reflect the range of cash rents.

Keep in mind that the report simply lists rental rates as submitted to FINBIN. Use the values as you see appropriate for your situation.

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Any use of this article must include the byline or following credit line:
Gary Hachfeld is a farm business management educator with University of Minnesota Extension.

Media Contact: Julie Christensen, U of M Extension, (612) 626-4077, reuve007@umn.edu

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URL: http:// www.extension.umn.edu/extensionnews/2005/farmlandrent07.html This page was updated July 23, 2007 .
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