When starting a farm business, every farmer has to deal with how to finance their operation.
Agricultural business management
Farmers are managing more dollars and more people. They are often their own accountants, business analysts, market and production specialists, and human resource departments. They face markets with narrow margins and a great deal of uncertainty.
Extension tracks the financial performance of Minnesota farms and provides farm management information to farmers, lenders and others concerned with the future of Minnesota agriculture.
We work with
- Farmers
- Lenders
- Ag tax professionals
- Income tax professionals
Guides and resources for ag business management
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What is the going rate for renting agricultural land in Minnesota? Make data-driven decisions on a fair price.
Historical land rental rates in Minnesota
Cropland rental rates - data on cropland, irrigated land and pastureland rental rates for Minnesota counties.
Farmland sale prices (not rent)
- Pull farmland sales data based on a specific time frame and area in Minnesota.
Historical farmland sale prices in Minnesota
What should you charge or pay for land rent?
- Download and complete this to help you determine what to charge for land rent.
- Download and complete this to help you calculate your income and expenses in crop production. This will help show what your operation can afford to pay in land rent.
is a free website that helps farmers and landowners evaluate rental options—cash, share, and flexible arrangements—by estimating the breakeven rent at different yields and prices.
Lease types and templates
- – Types and terms of leases, rights and responsibilities.
- Flexible land rental agreements - Learn about the different types of flexible land rental agreements.
- View sample leases and templates in the document library from
The Farm Legal Series is updated every five years to help producers and agricultural industry professionals stay on top of relevant legal topics, and inform their decisions that impact the farm, family and overall profits. You can view the series by individual issues or view all the topics together.
The University of Minnesota Extension agricultural business management team worked with law firm Winthrop and Weinstine, P.A., to update the series in 2025 with specific regard to Minnesota law.
The newest topic in this 24-document series is “Restriction on the foreign ownership or leasing of agricultural land,” and discusses requirements and limitations of those who own land in Minnesota.
View all articles in the .
Bankruptcy
- – While the Bankruptcy Code may help alleviate your debt, the choice does not come without consequences.
- – The most logical choice for a farmer who cannot continue to farm and must terminate his farming operation.
- – Allows a debtor to enter into an agreement with creditors under which all or a part of the business continues.
- – Designed specifically for the reorganization of family farms.
Business and farm entities
- – Factors to consider when selecting the type of entity for a farming operation.
- – Restrictions and exemptions on business entity types used in agricultural production.
- – Different types of trusts and the effect of the Corporate Farm Act, agricultural homestead issues, and the qualified farm property deduction on trust assets.
Contracts
- – Regulations and other legal considerations.
- – Advantages, regulations, and associated risks.
- – Elements of a legally enforceable contract, types of contracts.
Employees
- – State and federal employment laws that apply to farmers.
Financing and leases
- – Types and terms of leases, rights and responsibilities.
- – Loan classifications and sources, financial arrangements with suppliers, leases and contracts and more.
– Requirements and limitations of those able to own land in Minnesota.
Liability and risk
- – Potential liability issues, recreational land use protections, and other liability considerations for owners of agricultural land.
- – Identifying and mitigating counterparty risks.
Mortgages and contracts for deed
- – Legal differences between the use of real property to finance debt through mortgages and contracts for deed in Minnesota.
- – If a farm debtor is unable to perform under the terms of his real estate mortgage, the rights of the parties are determined by state law.
- – If a farm debtor is unable to perform under a contract for deed, the rights of the parties are determined by state law.
Security interests
- – Considerations regarding the use of personal property—such as livestock, machinery, equipment and crops—as security for a loan.
- – Options available to creditors with a security interest in personal property, and procedures under Minnesota law.
- – Legal remedies and issues surrounding unsecured creditors.
Taxes
- – There are several options available to farmers facing income tax issues.
Water laws
- – Water laws basics for surface water, ground water, navigable waters and wetlands.
Preparing and strategizing
- Preparing to transfer the farm business.
- Farm business transfer strategies
- Preparing to meet with your transition and estate planning team
Transferring real estate and assets
Estate planning is an ongoing process. As laws change and as life situations change, reviewing your estate plan is crucial.
For small vegetable growers and those selling direct to consumers
- Direct marketing farm products
- Marketing for cut flower growers
- Marketing mix analysis for farm operators
- Recordkeeping for specialty crops
- helps you identify the costs, returns and profits for each market, so you can make informed decisions on where to sell your products.
For commodity crop farmers
From the Center for Farm Financial Management
- by Ed Usset (3rd Edition. For sale.)
ABM resources
Farm finance
Find resources and tools to help you budget and manage your farm's financial health. Includes a complete set of financial statements for agriculture.
Women in Ag Network
The Women in Ag Network provides educational opportunities and events that enhance women’s leadership, management and production skills in agriculture.
Tax School
Courses are approved by the IRS Registered Preparer Office. The University of Minnesota Extension is an Approved Continuing Education Provider.
- Agricultural Tax Issues –Training for tax professionals, agricultural lenders, and farm management instructors
- Income Tax short course – Training for tax practitioners working with individual and small business returns, including CPAs, enrolled agents, lawyers, insurance personnel, and VITA volunteers.
Farmland rental workshops
Extension farmland rental workshops help farmers, landlords and ag professionals determine a fair farmland rental rate for all parties. Workshops are held every winter.
CropCost
CropCost helps you identify the cost of production for each crop you grow, as well as the breakeven cost of production at varying yields and expense amounts.
Farm Bill
The Extension Ag Business Management team hosts informational meetings around the state to educate farmers about key changes in the Farm Bill. Learn about how the current bill may affect your farm finances.
Learn more about ag business management
Contacts | News | Events | | YouTube | Newsletter sign-up
University of Minnesota Extension's agricultural business management team offers education and support to farm decision makers on farm management and marketing through workshops and software tools.
For general questions, contact [email protected]. For Women in Ag Network, contact Susanne Hinrichs at [email protected].
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