Following a 5.3% decrease in 2015, cash rents in Minnesota declined by an average of 1.8% in 2016, according to the University of Minnesota Extension. Average cash rents peaked in 2014.
The data shows an average rental rate decrease of 2.5% in the central region, a 2.4% decline in the southwest region, a 3.2% decrease in the south-central region and a 1.7% decline in the southeast region. The study also indicates the average cash rental rate edged up 0.1% in the northwest region, rose 0.9% in the west-central region and declined 3.1% in the east-central region.
Minimal Changes Over Time. Between 2012 and 2016, land rental rates increased by 2% in Minnesota. The east-central region saw the largest increase from 2012 to 2016—a jump of 8.3%. The northwest followed with an increase of 3.6%. The other regions have seen a 1% or less increase for land rental rates in the past four years.
For 2016, Stearns County marked the highest average rental rate with $252 per acre, which was $2 higher than 2016, but lower than 2013 and 2014 rates. Close behind was Freeborn County with an average rental rate of $247 and Martin County with an average rental rate of $245. Freeborn County’s 2016 rate was $9 higher than 2015, while Martin County’s rate represented a $10 decline from 2015. The lowest rents were in Kanabec, Marshall and Todd counties.
The land rental data comes from FINBIN, a database of more than 2,000 Minnesota farms maintained by the Center for Farm Financial Management at the University of Minnesota. Rental rates are generated for cash-rented land on all row-crop acres, small-grain acres, canning-crop acres, etc.
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