What Is A Fair Land Rental Rate In Southern Minnesota?
What is a fair land rental rate for next year's crop? That is a very common question at this time of the year! There is no easy answer and it typically gets very complicated, very quickly. Then of course you hear "coffee shop" talk about some farmer that rented a farm for what seems like a huge per acre rate. Then you may find out that the cash rent per acre includes the farmer's use of a machine shed, maybe grain bins and corn dryer, maybe even a hog finishing barn.
Then you hear of a very low cash rent but you do not know what else is in the agreement. Maybe the farmer is going to also mow the lawn for the landowner, or blow the driveway during the winter. There could be a family relationship or maybe the retired farmer just wants to give a young farmer and neighbor a break to get established? However, there is a way to get an idea of what the average cash rent is in an area! A "apples to apples" comparison so to speak.
The University of Minnesota Extension Service will be hosting a number of Farmland Rental Workshops in November all around Minnesota. The goal is to "help farmers, landlords and ag professionals determine a fair farmland rental rate. Presenters review historical rental rates throughout Minnesota and use data-driven decisions to help determine a fair value for the land."
Thanks to Extension Educator in Rice and Steele County Claire LaCanne one of these workshops will be in the 4-H Building on the Rice County Fairgrounds from 9:30 to 11:30 am on Monday, November 22, 2021. Then in the afternoon starting at 1:30pm in Owatonna at the Steele County Community Center. There is no charge to attend and you do not have to pre-register.
For more information check with Claire at the Rice or Steele County Extension office. Also, on the University of Minnesota Extension Service website click on the events tab and you can see the times, dates, and locations of all the land rent workshops!
LET'S PLAY A GAME: Never Have I Ever - Minnesota Edition