MSU Extension Farm Management

The Land Rent Calculator is designed to assist producers in comparing the impact of land rent payments against their farm's Net Farm Income. 

By inputting the farm's estimated income and expenses, a producer can determine whether the land rent being paid is reasonable or if a discussion, or even a possible re-negotiation, of the land rent agreement should take place.

There are several things that a producer renting land should consider as they use this calculator and begin discussions with landowners. All of these considerations include potential expenses or losses in revenue that impact the value of the farmland to a producer's operation.  For more helpful information on how to discuss the farm business with a landowner, see the MSU Extension article: Negotiating Reasonable Land Rent in Times of High Market Prices

Discussing the farm business with landowners will make them better informed about the challenges that exist on their property and the potential impacts to the farm's production and profitability. Producers can then work with landowners to develop a rental agreement that will benefit both parties; ensuring the retention of acres for the producer and steady rental income for the landowner over many years.