What is a Fair & 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.
The meeting will be held in locally at: Government Services Center Community Rooms, 500 West Fir Avenue, Fergus Falls, on Wednesday, December 2, 2015, 1:30 p.m.
Contact West Otter Tail County Extension office at 218-998-8760 for brochure with additional meeting locations and dates.