Thank you to everyone who participated in this year’s land rent survey. According to our survey results, 2017 land rental rates in Fillmore County averaged between $193.57-$202.67/acre. Survey responses for 2017 land rent ranged from $90.00-$300.00/acre. The predicted average for 2018 land rental rates is between $187.71-$197.47/acre. These values are based on 122 returned surveys, which is the highest number of returned surveys we have seen in some time.
Two things stand out in this year’s data. First, the average rental rate for 2017 is slightly higher than what was anticipated last year. While this may simply be because rental rates were negotiated higher than originally anticipated, it could also be due in part to the high number of responses we received. With more data coming in we get a more accurate estimate of what average county level land rent rates truly are. So there is likely some level of a correction being factored into this year’s results. Second, we continue to see land rent prices trending 5-10% lower. This is in line with data from other areas of the state and is due in part to the continuation of low commodity prices.
The results presented here are intended to be used as one piece of the discussion during land rent negotiations, not as specific values suggested by Minnesota Extension. Individual parcels may warrant a land rent value above or below the presented average based on production potential, tenant and landlord relationships, economic goals, and other factors. It is the responsibility of the landlord and tenant to consider all of these factors when negotiating land rent agreements. Please remember that Minnesota Extension does not advocate for one agricultural group over another. We are an unbiased source of information and we strive to help all agricultural parties.
Other sources of rental information can be found on the websites for Minnesota Extension (extension.umn.edu/) and the Center for Farm Financial Management (cffm.umn.edu). These websites have multiple resources available on calculating land rent values. These resources include historical land rent data, worksheets on calculating fair rent prices and a program that allows individuals to calculate multiple types of rental agreements based on input costs and commodity prices specific to their area and operation.
Hard copies of this year’s results can be obtained at the county extension office and will contain additional information on historical land rent trends. Please contact the Fillmore or Houston County Extension offices if you have any questions about the presented results.