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What is a Fair Farm Rental Agreement?

Media Contact: Dave Bau, Extension Educator, Ag Business Management, U of M Extension Regional Office, Worthington, 507-372-3900 ext 3906, [email protected]

Landlords, farmers and agri-business professionals should make plans to attend one of the informative meetings being held across Minnesota. These free meetings are being provided by the University of Minnesota Extension. Farm land rental rates are the largest input cost the farmer has and determining a fair farm rent agreement that satisfies the land owner and the farmer is always challenging. David Bau and Nathan Hulinsky, Extension Educators in Ag Business Management, will provide several ways – examples, factsheets and worksheets – to determine a fair farm land rental rate for both parties.

Topics covered at the meetings will include: local, historic and projected farmland rental rate trends, current farmland values and sales, and a worksheet to help determine a fair rental agreement. Input costs for 2025 will be presented along with current 2024 corn and soybean prices. Worksheets will examine 2025 costs and what is affordable rent to pay in 2025, the rate of return to the landlord at current market values, and examine flexible rental agreements.

Make plans to attend one of these meetings now. No pre-registration required for in-person meetings but it is required to receive the Zoom link for webinars. Attendees will receive several informative worksheets and factsheets that will help to determine what a fair 2025 farmland rental rate is.

Local workshops include:

For more information and a complete list of workshop dates and locations visit z.umn.edu/landrentworkshops or contact Taylor Herbert at (612) 394-5229 or [email protected].

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