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Extension > Extension in your Community > Douglas > Extension In Your County > Articles > What is a Fair Farmland Rental Agreement?

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What is a Fair Farmland Rental Agreement?

Landlords, farmers, and agri-business professionals should make plans to attend one of the informative meetings being held across Minnesota and online. These free meetings are provided by the University of Minnesota Extension. Farm land rental rates are the largest input cost the farmer has, determining a fair farm rent agreement is a challenge in today’s economy.

Negotiating a fair rental agreement that satisfies the land owner and the farmer is a challenge. Ag Business Management Extension Educators David Bau, Nathan Hulinsky, and Amber Roberts will provide several ways, including 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, and a worksheet that will help determine a fair rental agreement. Input costs for 2020 will be presented along with current 2020 corn and soybean prices. Worksheets will examine 2021 costs and what is affordable rent that a farmer will be able to pay in 2021, the rate of return to the landlord at current market values, and examine flexible rental agreements.

There will be 14 in-person meetings from November 18 through December 18 in Slayton, Owatonna, Rochester, Holdingford, Little Falls, Benson, Worthington, Buffalo, and Sleepy Eye. These sites will have limited seating and facemasks will be required to attend. You will need to pre-register for all in-person meetings at z.umn.edu/LandRentRegistration.

There will be regionally-focused online Zoom meetings.

  • November 30 - Crookston
  • December 1 - St. Cloud
  • December 2 - Moorhead
  • December 4 - Farmington
  • December 7 - Hutchinson
  • December 8 - Willmar
  • December 9 - Rochester
  • December 14 - Mankato
  • December 15 - Worthington

To register for these events, sign up online at z.umn.edu/LandRentRegistration. Most meetings begin at 10 a.m.