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What is a Fair Farm Rental Agreement?

By David Bau, Extension Educator

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. Farmer profits are low or negative and farm land rental rates declined slightly while commodity prices have decreased significantly. Determining a fair profitable farm rental agreement is a challenge in today’s economy with recent record corn and soybean prices and record farm land values as recently as 2012 but commodity prices continued to decline since then.

Negotiating a fair rental agreement that satisfies the land owner and the farmer is a challenge. David Bau and Nathan Hulinsky, Extension Educators 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 forty-two meetings now. Attendees will receive several informative worksheets and factsheets that will help to determine what is a fair 2018 farm land rental rate is.

November 30, 2017
  • Grygla –
    Grygla Community Center -
    127 N Main Avenue, Grygla, MN
    9:30 AM
  • Red Lake Falls –
    City Hall
    08 2nd St. SW
    Red Lake Falls, MN 56750
    1:30 PM

December 7, 2017
  • Crookston -
    VFW Post #1902
    121 North Main St.
    Crookston, MN 56716
    9:30 AM
  • Clearbrook -
    Clearbrook Community Center -
    200 Elm street Clearbrook, MN 56634
    1:30 PM

for more information, contact:

     Nathan Hulinsky, Extension Educator - Ag Business Management
     218-236-2009

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