The U.S. Department of Agriculture, citing lack of funds, is cutting back on an annual survey that can help farmers and landowners determine fair farmland rental rates. The 2014 survey is already completed, however, so just-beginning negotiations for 2015 rental rates won't be affected.
Still, the cutback is disappointing, says David Bau, agricultural business management instructor with University of Minnesota Extension.
"That's too bad," he says of USDA's decision to conduct its county-level cash-rents survey every other year.
Conducting the survey
The survey provides impartial statistics of cropland and pasture rental prices in every county. Though the county-wide average can mask big variations within a county, it's still one of the tools farmers and others can use.
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In the past, the surveys were conducted every year. The 2014 survey, released earlier this fall, can be used for 2015 negotiations.
But the National Agricultural Statistics Service, an arm of USDA, won't conduct the survey in 2015 and won't publish county-level cash-rents data again until September 2016.
The 2014 farm bill didn't contain enough funding for an annual county-level cash-rents survey, so NASS will conduct the survey every other year, says Troy Joseph, a NASS official in Washington, D.C.
NASS will still release its state-level cash rents survey in 2015, he says.
Tough task beginning
Farmers, landowners and farm managers across the Upper Midwest are beginning to tackle the sometimes onerous task of setting rental rates for cropland and pastures. Farmland rental agreements usually run one to three years, so a large number of contracts expire every fall and need to be renegotiated before the next growing season.
The task has been more difficult in recent years because of soaring crop prices; landlords have wanted more money, and farmers have been willing to pay it. Now, plunging crop prices reduce farmers' willingness to pay high rents, forcing some landlords to accept less money, experts say.
The process is just beginning, ag bankers, extension officials and farmers say, and they don't expect to have a good handle on trends until early December.
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Impartial statistics, such as the NASS county-level cash-rent survey, which can be found at www.quickstats.nass.usda.gov , can be a good starting point, Bau says.
Other impartial statistics, including ones from state farm business management programs, are available, too.
Minn. workshops set
Bau is conducting a series of 33 rental rate workshops across Minnesota in November and December. He'll look at how farmers and landlords can negotiate fair rental rates that satisfy both parties.
More information: www.blog.lib . umn.edu/efans/abmnews/land-rent.
Extension officials in North Dakota, South Dakota and Montana typically hold rental rate workshops during the winter, too. Contact your county or state extension office for more information.
