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2010 Fillmore County land rent survey


Fri, Apr 2nd, 2010
Posted in Agriculture

I was very pleased with the response to the Fillmore County Rent Survey and would like to thank all those who responded. In particular, I would like to thank Tammy Martin, FSA director, for doing the mailing with the FSA newsletter. I also need to thank Kristi Ruesink; she has produced an Excel spreadsheet to more easily tabulate the results.

The response included 185 parcels which totaled 17,498 tillable acres. In the survey, I ask for both the 2009 actual rent paid and the 2010 projected price per acre. To jump to the bottom line, the average rent reported paid in 2009 was $152.89 per tillable acre. Rent for 2010 is projected at $156.48 per acre.

Prior to 2007-2008 rent typically went up about $2-$3 per year, or about the rate of inflation. It would appear we are back to that after the sharp run-up in rent prices when everyone believed the corn price was going to be $7.00 per bushel instead of the current $3.30.

With that large response, I was able to sort the data several ways. As typical, there was a huge range in rental prices, the numbers reported for 2010 ranged from $60 to $230 per acre. I'm sure at least part of this variation is recognition by both owners and renters that there is considerable variation in the soils in Fillmore County.

Part of the sorting I mentioned was by acreage size, parcels 20 acres or less averaged $128.44 per acre projected for 2010, while those from 21-up to 80 acres averaged $138.13 per acre. With the overall average projected as $156.48 for 2010, the smallest parcels rent for $28.04 per acre less.

Twenty-one percent reported an increase in rent with four percent reporting a decrease. Last year's survey had 31 percent projecting an increase and three percent reporting a decrease. Based on this, I would say land rent is still increasing but at a slower rate.

Another question in the survey asked if any facilities were included, in this case eight percent reported some extra facilities. Common items listed included sheds and grain bins.

Ten percent reported renting at least a portion of the acres from someone in their family. In 2007, the family rents were $5.00 below the average with 2008 projections $6.00 below non-related parties, the 2009 projection is $18.14 below average rent. The 2010 projection is $26.64 below the average rent paid. Family members are not raising rent as fast as non-related parties.

When rental payments are made, is also of interest. The most common by far is the first half in the spring and the second half in the fall.

Completed responses included:

•½ spring, ½ fall 61 percent

•All fall 9 percent

•All spring 23 percent

•1/3 spring, 2/3 fall 3 percent

•Other 4 percent

1996-2009 Fillmore County Land Rental Survey Results:

•1996 Average Cash Rent Reported $75.00 /tillable acre

•1997 Average Cash Rent Expected $78.00 /tillable acre

•Range of Responses $52.00 - $100.00 /tillable acre

•1997 Average Cash Rent Reported $81.00 /tillable acre

•1998 Average Cash Rent Expected $82.00 /tillable acre

•Range of Responses $50.00 - $110.00 /tillable acre

•1998 Average Cash Rent Reported $84.95 /tillable acre

•1999 Average Cash Rent Expected $85.29 /tillable acre

•Range of Responses $17.00 - $120.00 /tillable acre

•1999 Average Cash Rent Reported $86.95 /tillable acre

•2000 Projected Cash Rent $85.77 /tillable acre

•2000 Average Cash Rent Reported $89.85 /tillable acre

•2001 Projected Cash Rent $91.64 /tillable acre

•Range of Responses $39.00 to $135.00 /tillable acre

•2001 Average Cash Rent Reported $93.22 /tillable acre

•2002 Projected Cash Rent $95.81 /tillable acre

•Range of Responses $50.00 - $135.00

•2002 Average Cash Rent Reported $98.10 /tillable acre

•2003 Projected Cash Rent $101.71 /tillable acre

•Range of Responses $38.00 - $135.00

•2003 Average Cash Rent Reported $98.91 /tillable acre

•2004 Projected Cash Rent $101.15 /tillable acre

•Range of Responses $70 - $150

•2004 Average Cash Rent Reported $100.60 /tillable acre

•2005 Projected Cash Rent $102.09 /tillable acre

•Range of Responses $18.18 - $145.00

•2005 Average Cash Rent Reported $110.09 /tillable acre

•2006 Projected Cash Rent $112.49 /tillable acre

•Range of Responses $75.00 - $140.00

•2006 Average Cash Rent Reported $106.95 /tillable acre

•2007 Projected Cash Rent $108.56 /tillable acre

•Range of Responses $75.00 - $140.00

•2007 Average Cash Rent Reported $104.62 /tillable acre

•2008 Projected Cash Rent $110.32 /tillable acre

•Range of Responses $73.00 - $150.00

•2008 Average Cash Rent Reported $133.62 /tillable acre

•2009 Projected Cash Rent $145.43 /tillable acre

•Range of Responses $50.00 - $250.00

•2009 Average Cash Rent Reported $152.89 /tillable acre

•2010 Projected Cash Rent $156.48 /tillable acre

Range of Responses $60.00 - $230.00

When I look at the 2010 cash rent projected at $156.48, and compare it to the 1996 cash rent reported in the original survey, it works out to an average increase of $5.46/acre/year, much of that increase coming in the last few years.

In townships with three or more parcels reported, I created a more detailed report. If interested, contact the Fillmore County Extension Office at 507-765-3896.

Another source of land rent information is the FINBIN numbers available at www.cffm.umn.edu then click on Publications and "Rental Rates for MN Counties - 09. 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. The historical trend in rental values is used to project what average county land rental rates might look like.

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