Farm Horizons, April 2014

Cropland rental rates continue to rise in local counties

By Ivan Raconteur

Rental rates for cropland have generally increased each year since 2008, accoridng to a report prepared by University of Minnesota Extension.

In Carver County, the rental rate per acre has increased from $131 in 2008 to $179 in 2011, and was projected to reach $206 in 2012, according to a July 2013 report.

The rates for McLeod County followed a similar path, increasing from $135 in 2008 to $185 in 2011, and were projected to reach $196 in 2012.

Rates for Meeker County were not available for 2008 or 2009, but increased from $128 in 2010 to $150 in 2011, and were expeced to rise to $159 in 2012.

Numbers for Wright County were not available when this report was prepared.

The authors of the report made it clear their findings were intended only as a guide, and should not be used to “establish, determine, set, fix, or even hint at what actual rents should be.”

The information is simply intended as a report of historical land rental rates in Minnesota.

The land rental rates published in the report are extracted from FINBIN, a database of summaries from more than $2,300 Minnesota farms.

All row crop acres, small grain acres, and canning crop acres are included in the data analysis.

Counties with a minimum of 10 farms reporting land rent data for FINBIN are included. Information was not included for counties in which not enough farms reported.

In general, the average annual change in land rental rates for the central region from 2008 to 2012 was 12 percent. From 2011 to 2012, the increase was 13.4 percent.

The 2011-12 annual change data shows a greater change than in past years in all regions, according to the report.

For more about factors that influence land rent, see the piece by Myron Oftedahl, farm business management instructor at South Central College, in this issue.

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