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MN Crop Land Rental Rates Continue Downward Trend

by | Jul 2, 2019

Over the last five years, the average land rental rates across Minnesota have declined by twelve percent. This includes a one year decline from 2017 to 2018 of 1.6%. This information is based on weighted average data from the FINBIN farm financial database. The Cropland Rental Rates publication has recently been updated and includes detailed information for each Minnesota county over the last five years.

Regional changes

In several regions, the five-year percent change is negative. This means current rental rates have declined below their 2014 levels. This decrease follows a significant increase in land rental rates in most regions from 2010 to 2013.

Summary of changes in regional MN cropland rental rates.

The 2017-2018 annual change data shows the continuation of a slight downward trend in rental rates for six of the eight regions. In the Northwest and East Central regions, there was an increase. It should be noted, the East Central region has limited data available for this analysis. This trend follows a decline farm profitability, as Minnesota farms continue to struggle with low prices. To learn more about the financial health of the state’s agriculture industry view the 2018 FINBIN Report on Minnesota Farm Finances.

County rental rates

Historical rental data is included for years 2014 to 2018. These values are weighted average rental rates. Also included for the 2018 data is the median (middle value) cash rent, as well as the 10th and 90th percentile ranges. These figures are compiled using the cash crop enterprise level data from FINBIN. Also included in the publication are USDA/NASS values from their 2017 publication (the most recent available).

Summary

The land rental rates listed in this publication are not meant to predict future land rental rates. They are simply a historical listing of land rental data from 2014 to 2018, as report in FINBIN. The land rental rates and percent change figures listed are merely a starting point or guide when considering land rental negotiations. There is not intent to predict future changes in cropland rental rates.

Economist | 612-625-6760 | dnord@umn.edu | + posts

Dale is a major contributor to the design and development of the FINPACK farm software as well as the FINBIN Farm Financial Benchmarking Database.

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