Fair farm rental agreement?
The U of M Extension will be holding free informative land rent meetings for landlords, farmers and agri-business people .
Farm land rental rates have started to go lower as corn and soybean prices continue downward in 2016. Determining a fair farm rent agreement is a challenge in today’s economy. Current corn and soybeans prices are significantly lower in 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, Gary Hachfeld and Nathan Hulinsky, MN Extension Educators in Ag Business Management, will provide several examples; factsheets and worksheets - to determine a fair rate for both parties.
Topics covered will include local historic and projected farmland rental rate trends, current farm land values and sales and a worksheet that will help determine a fair rental agreement. Input costs for 2017 will be presented along with current 2017 corn and soybean prices. Worksheets will examine 2017 costs and what is affordable rent that a farmer will be able to pay in 2017, the rate of return to the landlord at current market values and examine flexible rental agreements.
The meetings will be:
o Nov. 14, 9:30 a.m. City Hall, Long Prairie.
o Nov. 14, 1:30 p.m. Cornerstone Restaurant, Melrose.
o Nov. 15, 9:30 a.m. and 1:30 p.m. Douglas County Public Works Bldg, Alexandria.
o Dec. 9, 9:30 a.m. Morrison County Government Center, Little Falls.
o Dec. 9, 1:30 p.m. City Hall, Foley.
For more information: contact Brenda Miller, Todd County extension, at 320-533-4655 or nels4220@umn.edu.