Landlords, farmers and agri-business professionals should make plans to attend one of the free, informative meetings being held across Minnesota provided by the University of Minnesota Extension. Farm land rental rates are the largest input cost the farmer has, and determining a fair farm rent agreement is a challenge in today’s economy with current low corn and soybeans prices in 2019.
Negotiating a fair rental agreement that satisfies the land owner and the farmer is a challenge. David Bau, Extension educator in ag business management, and Jason Ertl, local ag production systems Extension educator, will provide several ways to approach this topic; by examples, fact sheets and worksheets to determine a fair farm land rental rate for both parties. Data collected from the 2019-20 Nicollet County Land Rent Survey will also be available; this survey was circulated to Nicollet County residents earlier in the fall and can be used to observe rental rate trends on county and township levels.
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 2019 will be presented along with current 2019 corn and soybean prices. Worksheets will examine 2020 costs and what is affordable rent that a farmer will be able to pay in 2020, the rate of return to the landlord at current market values and examine flexible rental agreements.
Some of the meetings have already taken place, but a last meeting will be held locally in:
• St. Peter - Dec. 19, - 9:30 a.m. & 1:30 p.m., Health & Human Service Building, River Room, Basement, 622 Front St., St. Peter.
For a complete list of meeting dates in Minnesota visit the “Upcoming Workshop Calendar” on the Extension Agricultural Business Management Website: z.umn.edu/abm. Contact the Le Sueur County Extension, Nicollet County Extension or Sibley County Extension offices if you have additional questions about the workshops or land rental rates.