By Michael Cruse
Extension Educator for Fillmore and Houston Counties
Thank you to everyone who participated in this year’s land rent survey. According to our survey results, 2016 land rental rates in Fillmore County averaged between $199.50-$208.83/acre. This is lower than the $213.16/acre reported for 2015 and about even with the $207.67/acre predicted for 2016 in last year’s survey. The range of responses this year was from $75-$310/acre. The predicted average for 2017 land rental rates is between $185.97-$195.18/acre.
Average rental rates are presented again this year as a range instead of a single value because this range more accurately represents the true average when survey response rates are low. The range was calculated using two methods of averaging and if you are interested in the specifics of these calculations I encourage you to contact me at the extension office. Response rate was up very slightly this year and the survey response rate was similar to those of other land rent surveys done in the region. This year’s survey includes data from 16 different townships, which represents a nice cross section of the county. I have decided again not to calculate any township specific results because of the low survey response rates. Response rates will need to increase significantly for me to make this calculation in the future.
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.
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. Other sources of rental information that can help with land rent discussions can be found on the Minnesota Extension website (extension.umn.edu/). There you will find historical land rent data, worksheets on calculating fair rent prices and other landscape level economic information put together by our Ag Business Management group. In addition, the Center for Farm Financial Management has created a program called FairRent (fairrent.umn.edu). This program allows individuals to calculate multiple types of rental agreements based on input costs and commodity prices specific to their area and operation.
If you have any questions about this or any other data from Extension, please feel free to contact the local office.
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