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Monday, July 11, 2011

Minnesota cropland rental rates available from U of M Extension

Cropland rental rates continue to vary widely throughout Minnesota, according to a land rental report of historical data issued by University of Minnesota Extension.

The report lists five years of rental rate data from 2006 through 2010. It utilizes actual rental information from a database of nearly 2,400 Minnesota farmers enrolled in farm business management programs through MnSCU and Extension.

“This report is a benchmark and starting point for folks trying to determine land rental rates. The rates listed are historical so they are not meant to establish or set actual rents for the future,” said Gary Hachfeld, Extension agricultural business management educator and co-author of the report. “Landowners and operators need to negotiate land rental rates based upon several criteria including the productivity of the land, demand for the land, return on investment for the landowner, profit margins of the operator, and other factors,” said Hachfeld.

The report lists average land rents, by county, for the years 2006 through 2009. For the 2010 crop year, the data includes an average rent, the median rent, and a 10th and 90th percentile rent. The 10th and 90th percentile numbers act as a range of rental rates by county. New for 2011 is the addition of rental rates gathered by the National Ag Statistical Service (NASS) through a statewide survey process. These numbers add an additional comparison for landowners and operators. On the last page of the document there is a table that lists the percentage change in rents from 2006-2010 and from 2009-2010.

All Minnesota counties are listed except Ramsey County and the counties in the far northeast part of Minnesota. Counties were included if they had 10 or more farm operations reporting land rent data. If a county does not have 2006-2010 data but does have NASS data, there were fewer than 10 farmers reporting land rent for that county. The data is organized by regions of the state.

Interested landowners and operators can view the report at www.extension.umn.edu/go/1069.

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