crop land rental rates

Asked November 9, 2015, 11:44 AM EST

I live in NW Minnesota on a farm with 118 acres of cropland acres we rent out. I am trying to find what is a fair rate to both the person renting my farm and fair to me. Our farm is located to the west of Pelican Rapids, MN. With Farm land purchase prices having jumped so much since purchased the rental rate has not. When we first moved here we were getting about 15 - 20% of the purchase price as rent. That has dropped to 2% in relation to current land purchase price, which is an extremely poor return.

Where may I find current rental rates for cropland in my area? How do I find out what current rates are and how compare?

Please if providing links for information be as specific as possible on where to find the information.

Thank you

Otter Tail County Minnesota small farm issues land rental rental rates

3 Responses

Farm land rental values are influenced by local factors in most situation attached you will find the past few years farm land cash rental rates being paid in Wilkin county, MN. As reported by the USDA-NASS http://quickstats.nass.usda.gov/ for 2010 ---2014. If you want to know what others would pay for rent you need to let farmers know you are looking to rent your land. This can in most farming regions be achieved by putting a FARM LAND FOR RENT sing on your property. In addition you can place an advertisement in local newspapers or area farm publication’s to promote that you have land available to be rented. When you ask how to compare your land I have attached a rental checklist that identifies some of the considerations that go into development of a fair land rent. If you have this information available you can then go to the above noted USDA web site to get some historical yield for your part of the state to see if you are above or below average. In most cases soil fertility (soil test info), crop yield history, soil type are a great start in knowing the value of land.

You suggest that your rent is 2% of land value so at $138 per acre you are suggesting land is valued at $6,900 per acre. Across most of the mid-west land values have dropped 15% to 20% from 2013 values as crop prices have declined over the past three years.





response

Farm land rental values are influenced by local factors in most situation attached you will find the past few years farm land cash rental rates being paid in Wilkin county, MN. As reported by the USDA-NASS http://quickstats.nass.usda.gov/ for 2010 ---2014. If you want to know what others would pay for rent you need to let farmers know you are looking to rent your land. This can in most farming regions be achieved by putting a FARM LAND FOR RENT sing on your property. In addition you can place an advertisement in local newspapers or area farm publication’s to promote that you have land available to be rented. When you ask how to compare your land I have attached a rental checklist that identifies some of the considerations that go into development of a fair land rent. If you have this information available you can then go to the above noted USDA web site to get some historical yield for your part of the state to see if you are above or below average. In most cases soil fertility (soil test info), crop yield history, soil type are a great start in knowing the value of land.

You suggest that your rent is 2% of land value so at $138 per acre you are suggesting land is valued at $6,900 per acre. Across most of the mid-west land values have dropped 15% to 20% from 2013 values as crop prices have declined over the past three years.