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Thursday, October 22, 2015

What is a fair and profitable farm rental agreement?

Landlords, Farmers, Agri-Business Professionals should make plans to attend one of the informative meetings being held across Central and Southern Minnesota.  These free meetings are being provided by the University of Minnesota Extension.  Farm land rental rates have never been higher and determining a fair farm rent agreement is a challenge in today's economy with current significantly lower corn and soybeans prices in 2014, 2015 and 2016 compared to recent record corn and soybean prices and record farm land values.

Negotiating a fair rental agreement that satisfies the land owner and the farmer is a challenge.  David Bau, Pauline Van Nurden and Gary Hachfeld, 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 and profitable rental agreement.  Input costs for 2016 will be presented along with current 2016 corn and soybean prices.  Worksheets will examine 2016 costs and what is affordable rent that a farmer will be able to pay in 2016, the rate of return to the landlord at current market values and examine flexible rental agreements.

Make plans to attend one of these meetings now.  Attendees will receive several informative worksheets and factsheets that will help to determine what is a fair 2016 farm land rental rate is.

The meeting will be held locally at:

·       Farmington: Nov. 4, at 8:30 a.m., Dakota County Extension and Conservation Center, 4100 220th St W, Farmington

·       Hastings: Nov. 4. at 1 p.m., Pleasant Hill Library, 1490 Frontage Road, Hastings

·       Cologne: Nov. 13, at 9 a.m., Carver County Public Works Building, 11360 US Hwy 212, Cologne

·       *Jordan: Nov. 13, at 1 p.m., Scott County Extension Office, 7151 190th West, Jordan

·       Chaska: Nov. 23, at 9:30 a.m., Carver County Government Center Township Hall, 606 E 4th St, Chaska

·       *Shakopee: Nov. 23, at 1:30 p.m., Shakopee Police Dept., Community Training Room, 474 Groman St, Shakopee

·       Blooming Prairie: Dec. 3, at 9:30 a.m., Blooming Prairie City Center, 138 Hwy Ave S, Blooming Prairie

·       Owatonna: Dec. 3, at 2 p.m., Steele County Community Center, 1380 S Elm St, Owatonna

*A small fee of $15.00 will be charged at the Jordan and Shakopee locations.
For the full schedule of land rent workshops across Minnesota, check the calendar online here:http://z.umn.edu/LandRentSchedule or call Extension's Farm Information Line at 1-800-232-9077
Source: Neith Grace Little, Dakota County Extension Educator in Agriculture Water Quality, U of M Extension Regional Center, Farmington, 651-480-7723, nglittle@umn.edu , http://z.umn.edu/dakota
 

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