Farmland rental agreements are currently being decided and agreed upon and indications are that lower commodity prices have ended the years of increasing farmland rental rates despite there being high demand for leased land. In recent years some areas have seen rental rates skyrocket such as in North Dakota’s McIntosh county where rates increased 90% from $33.80 in 2008 to $66.40 in 2013. Although experts see a leveling off of rates, they do not expect to see a decline happening. Although crop prices have dropped, they are still relatively historically high. Five years ago soybeans garnered an average of $7 per bushel at the elevator, and currently even after a decline in prices they are getting an average of $12 per bushel. Some rental rates could increase in 2014, particularly multi-year agreements which will need adjusting. The U.S. Department of Agriculture’s National Agricultural Statistics Service has compiled average rental rates for non-irrigated farmland in 2013, blending average rates from one through five year leases for Minnesota, Montana, South Dakota and North Dakota:
· Minnesota – $177 per acre – up from an average of $135 in 2011
· South Dakota – $104 per acre – up from an average of $78 in 2011
· North Dakota – $64 per acre – up from an average of $51 in 2011
· Montana – $23.50 – the same rate as in 2011 but up from $20.50 in 2008
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