MANKATO, Minn. (7/15/2010) n Cropland rental rates continue to vary widely throughout Minnesota based upon a land rental report of historical data from the University of Minnesota.
The report, issued by University of Minnesota Extension, lists five years of rental rate data from 2005 through 2009. It utilizes actual rental information from a database of nearly 2,400 Minnesota farmers enrolled in farm business management programs through MnSCU and U of M Extension.
“This report is simply 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, etc. This process is not a science. It is an art unfortunately says Hachfeld.”
The report lists average land rents, by county, for the years 2005 through 2008. For the 2009 crop year, the data includes an average rent, the median rent, and a 10 and 90 percentile rent. The 10 and 90 percentile numbers act as a range of rental rates by county. There is also a table on the last page of the report that lists the percentage change in rents from 2005-2009 and from 2008-2009.
Not all Minnesota counties are listed. In order to insure a level of statistical validity, only counties with 15 or more farm operations in a given county reporting land rent data were included. If a county does not appear in the report, there were less than 15 farmers reporting land rent data. The data is organized by regions of the state.
Landowners and operators interested in a copy of the report can contact their local Extension office or they can go on-line for a copy. The report can be viewed at www.extension.umn.edu/agbusinessmanagement. Additional Minnesota land rental data by county can be found by going to www.nass.usda.gov and selecting Minnesota in the “select a state” link box.