Cash Rent for 2010

I was just looking through the National Agricultural Statistics Service (NASS) Cash Rents for 2010 report, and saw a couple interesting trends. First of all, cash rents for non-irrigated cropland took some big jumps in the last year, and continue to be highest in our part of the state.

For example, cash rents rose about $10 per acre in Kandiyohi County, from $144 in 2009 to $154 in 2010; and jumped $17 per acre in Renville County, from $146 in 2009 to $163 in 2010. There were $20 per acre increases in both Chippewa and Yellow Medicine Counties; with both counties now hovering around $150 per acre cash rents.

The biggest year-over-year increase in cash rent for non-irrigated cropland happened in Dodge County, in Southeast Minnesota, which went from $177 in 2009 to $201 in 2010. The first and only county to break $200 per acre on average, Dodge County was at the top of the state for cash rents in 2010.

Cash rents in many of the most productive counties in Southern Minnesota are now hovering between $125 and $175 per acre; with more counties moving toward the $175 side of the equation. In our region and beyond, I found 26 counties where cash rents had climbed above $150 per acre. If recent trends continue, I could easily see maybe 8 to 10 more to hit that level in the next year.

If you have questions about your cash rent levels, or would like an appraisal on your farmland, please give me a call at 320-894-7528. I would love to help you get full value for your farmland!

Thanks,
Noah Hultgren
The FarmlandMan.com
noah@farmlandman.com
www.farmlandman.com

Useful Advice for Farmers who Rent Land

I recently read an interesting article in the AgWeek publication about new ways to improve the relationship between farmers who rent land and the landowners they rent from.

The author noted that winter is typically the time of year when farmers and landowners are negotiating rental agreements, and highlighted a couple ideas on how to forge a stronger partnership. Consider these solutions from Willie Huot, a North Dakota extension educator "who has studied land rent negotiations and advises farmers on how to approach them":

• Consider creating a newsletter to update landlords on what’s happening on the farm and in agriculture. - “It’s an educational effort and a communications tool,” Huot says.
• Resumes are another potential tool. Producers can list their agricultural accomplishments and abilities, much the way a job seeker does.

These could be great ways to keep in contact with landowners by giving them more insight into the type of farming operation being run and the plans for the future.

If you are looking for help selling your farmland or in navigating the ever-changing rental market, please give me a call at 320-894-7528.

Have a great day!

Noah Hultgren

The FarmlandMan

noah@farmlandman.com

Sugar beet summary

I was just reading through the summary of the 2010 review from the Southern Minnesota Beet Sugar Cooperative in the January 2011 edition of "The SugarBeet Grower Magazine."


SMBSC's Todd Geselius reported that SMBSC's growers ended the 2010 crop year by delivering 3,094,801 tons from 114,893 harvested acres, resulting in an average yield of 26.94 tons per acre. "This is the second largest crop we have grown at Southern Minnesota, surpassed only by the 2009 crop," noted Geselius. "The sugar content ended the season at 16.23%." Overall, it was considered a great crop year.


I compared that to the results from some of the other sugar companies that reported in, and SMBSC seemed to be in line. For example, American Crystal Sugar Company reported 26.3 tons per acre (which was the highest average yield in their history) and just over 18% sugar content. The Michigan Sugar Company averaged 26.07 tons per acre (which was also second highest in their history) and 18.17% for grower sugar. Minn-Dak Farmers Cooperative harvested 3,108,000 tons of sugarbeets with an average of 27.15 tons per acre, with average sugar content of 16.8%.


Successful harvests are likely to continue to push land values and rents higher in the future. To learn more about your options for seeling or renting your land, please contact me at 320-894-7528 or noah@farmlandman.com. I'd love to help you make the most of this market!


Take care,
Noah Hultgren
The FarmlandMan
www.farmlandman.com