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Houston County land rent projects slight increase for 2014


By Jerrold Tesmer

Fri, Oct 25th, 2013
Posted in All Agriculture

Based on the results of the recently completed Houston County Land Rent Survey, farmland rent continued to increase, although based on the projections for 2014 at a slower pace! There were 48 usable surveys down from last year with 3,326 tillable acres in this year’s survey. I want to thank all those that responded to the flyer.

The range of survey responses for 2013, were from $50 to $300 /tillable acre. The 2013 average rent per tillable acre reported was $196.46/acre, higher than the 2013 projection of $162.45 in last year’s survey. The projection for 2014 is $200.90/acre. ninety percent felt rent would be the same from 2013 to 2014. Two – thirds of the surveys were filled out by the landlords, one-third by the operators.

I started breaking out the results by parcel size a few years ago. The survey showed parcels of less than 20 acres averaged $196.34/acre, while those parcels from 20-79 acres in size averaged $178.85. This is the reverse of last year’s results, this year the small parcels were not discounted and the mid-size parcels were?

Other information gathered with the survey include: 14 percent rent from a family member, and averaged $180.91/acre. When rental payments are made is also of interest. The most common remains a first half payment in the spring and the second half in the fall.

Completed responses included:

½ spring, ½ fall 75%

All fall 9%

All Spring 9%

Other Schedules 7%

This is my ninth year for the Houston County Land Rent Survey. Each year, something unique appears. For the first time, no one reported renting other facilities such as grain bins or pole sheds being included.

There were responses from 14 townships, so a good cross section of Houston County. For those townships with three or more responses I do a township average and range. To discuss these results or receive a copy, contact the Houston County Extension Office at 507-725-5807 or tesme001@umn.edu, or check the University of Minnesota Extension website at www.extension.umn.edu scroll down the page, near the bottom it says “Offices,” click and the Minnesota map will appear, click on Houston County.

Another source of land rent information is at the Center for Farm Financial Management at www.cffm.umn.edu click on Publications, then Farm Management, and finally “Rental Rates for MN Counties – 2012”. They do not list Houston County separately do to a lack of Farm Management participants in Houston County, but you can see results from other counties. These numbers are extracted from FINBIN -- a database of farm record summaries of nearly 2,400 Minnesota farmers. The farmers participate in the Minnesota State Colleges and Universities (MnSCU) Farm Business Management program as well the Southwestern and Southeastern Minnesota Farm Business Management Associations.



2005-2014 Houston County Land Rental Survey Results

2005 Average Cash Rent Reported $98.55 /tillable acre

2006 Average Cash Rent Expected $98.45 /tillable acre

Range of Responses $22.00 - $130.00 /tillable acre

2006 Average Cash Rent Reported $101.97 /tillable acre

2007 Average Cash Rent Expected $ 99.43 /tillable acre

Range of Responses $16.00 - $135.00 /tillable acre

2007 Average Cash Rent Reported $99.88 /tillable acre

2008 Average Cash Rent Expected $98.83 /tillable acre

Range of Responses $40.00 - $180.00 /tillable acre

2008 Average Cash Rent Reported $124.53 /tillable acre

2009 Average Cash Rent Expected $129.38 /tillable acre

Range of Responses $40.00 - $200.00 /tillable acre

2009 Average Cash Rent Reported $126.42 /tillable acre

2010 Average Cash Rent Expected $126.08 /tillable acre

Range of Responses $22.00 - $200.00 /tillable acre

2010 Average Cash Rent Reported $138.46 /tillable acre

2011 Average Cash Rent Expected $142.45 /tillable acre

Range of Responses $10.00 - $210.00 /tillable acre

2011 Average Cash Rent Reported $157.17 /tillable acre

2012 Average Cash Rent Expected $162.45 /tillable acre

Range of Responses $37.50 - $300.00 /tillable acre

2012 Average Cash Rent Reported $159.32 /tillable acre

2013 Average Cash Rent Expected $173.75 /tillable acre

Range of Responses $50.00 - $375.00 /tillable acre

2013 Average Cash Rent Reported $196.46 /tillable acre

2014 Average Cash Rent Expected $200.90 /tillable acre

Range of Responses $50.00 - $300.00 /tillable acre

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