Completed Project Report


Web-Based Land Rental Risk Analysis

  • Award Amount: $49,969
  • Regional Center: North Central Extension Risk Management Education Center
  • Grant Program: 2013 Unrestricted Grants
  • Project Director: Dale Nordquist
  • Email: dnord@umn.edu
  • Organization: Center for Farm Financial Management

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Project Overview

FairRent for the Web was developed and distributed to provide a web-based software application to evaluate risks associated with alternative land rental arrangements. The application was enhanced to include seven alternative flex-lease options as well as evaluations of cash and share rental arrangements. The new software also evaluates the impact of crop insurance on downside risk. Producer’s production costs, expected yields and prices are used to determine the economic bidding range for rental land. Share rental is evaluated based on producer net returns after sharing of production and expenses at various rates. Flexible lease options allow producers and landlords to evaluate various approaches to sharing risk. Each analysis includes sensitivity to a range of yields and prices. The application was promoted to 20,000 individuals included in the CFFM client database. FairRent was used in Minnesota Extension rental meetings to help explain the economics of land rental decisions. Eighty-nine individuals attended CFFM’s webinar to introduce the economic concepts used in FairRent and to answer user questions.  Beginning farmers were targeted through training provided to Minnesota Farm Business Management Education programs. To date, 2,126 users have used FairRent to evaluate 2,405 cash, 143 share, and 449 flexible lease arrangements.

Number of Participants: 3791

Outcomes

Project Steps

PROMOTIONAL MATERIALS

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EDUCATIONAL MATERIALS

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DELIVERY AREA

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