10 Questions to Ask Before Renting Out Your Farmland in Minnesota

If you're a landowner in Minnesota considering renting out your farmland, you're not alone. Thousands of acres across Southeast Minnesota are leased each year to growers, investors, or custom farming operators. Whether you're transitioning out of active farming or looking to create passive income, renting can be a smart move, but only if you ask the right questions first.

At Bunne Farms, we've helped landowners in Fillmore, Dodge, and Mower counties lease their land with confidence. Here are the 10 most important questions to ask before renting out your farmland—plus expert insights to protect your land and maximize return.

1. What Are My Goals for Renting Out the Land?

Before signing any agreement, define your long-term and short-term goals:

• Are you looking for steady, predictable income?
• Do you want to maintain involvement in farming decisions?
• Is this a temporary or long-term lease?
• Are you eventually planning to sell the land?

Knowing your intentions helps guide the type of lease agreement (e.g., cash rent vs. crop share) and who you partner with.

2. Is the Land Ready to Be Rented?

Custom Farming

Renting out farmland successfully means offering a parcel that’s productive, accessible, and legally clear.

Ask yourself:

• Is the land cleared, drained, and farmable?
  
• Are there any conservation restrictions or easements?
  
• Do you have up-to-date soil tests or crop history?

At Bunne Farms, we can walk your land, review its condition, and suggest improvements that may increase rental value.

3. What Lease Structure Is Right for Me?

There are several ways to structure a farmland lease:

• Cash Rent: Flat fee paid annually or per acre—simple and predictable
• Crop Share: Landowner receives a percentage of the crop or income
• Flexible Lease: Rent changes based on yield, market price, or other variables
• Custom Farming Agreement: You keep full ownership and hire a local operator (like us) to manage the land and operations

Each option has different levels of risk, reward, and involvement. We’ll help you compare.

4. How Do I Set a Fair Rental Rate?

Rates vary widely in Minnesota based on:

• Soil productivity index (CPI)
  
• Crop history and rotation
  
• Water access and drainage
  
• Current commodity prices
  
• Local market demand

In Southeast MN, rates often range from $200 to $350 per acre. Bunne Farms offers free land assessments to help you determine a fair and competitive rate.

5. Who Will Be Responsible for Inputs and Maintenance?

This includes:

• Fertilizer and seed
• Equipment use and upkeep
• Weed and pest control
• Tiling, fencing, and soil conservation
• Property taxes and insurance



These terms should be clearly defined in the lease. Custom farming arrangements typically include full-service care—so you don’t have to worry.

6. What Legal Protections Do I Need in the Lease?

Work with an experienced partner or attorney to draft a written lease that includes:

• Length and renewal options
  
• Payment schedule and structure
  
• Land usage limits (e.g., no overgrazing or chemical misuse)
  
• Termination clauses
  
• Conservation compliance
  

We help landowners create strong, fair contracts that protect your interests and property value.

7. How Often Will I Get Updates on My Land?

Especially for absentee landowners, transparency is key.

Ask your renter:

• How often will they communicate with you?
  
• Will you receive crop reports or yield summaries?
  
• Can you visit the land during the season?

At Bunne Farms, we provide regular updates to all landowners and treat your land with the same care as our own.

8. Is My Tenant Reputable and Experienced?

Don’t rent to just anyone who shows interest.

Ask for:

• Local references
• Equipment capabilities
• Years of farming experience
• Understanding of soil conservation and crop rotation

Choosing a local, family-run partner like Bunne Farms ensures reliability, stewardship, and pride in your land’s performance.

9. How Will Renting Affect My Taxes and Insurance?

• Will your property tax classification change?
• Should your insurance coverage shift to include renter activity or liability?
• Do you qualify for Minnesota ag tax credits or deductions?

These details should be reviewed with your CPA or insurance agent—something we’re happy to assist with.

10. Do I Want to Stay Involved in Farming Decisions?

Many landowners still want a say in:

• Crop choice (corn, soybeans, cover crops)
• Fertility and chemical plans
• Conservation practices
• Harvest timing



You can stay involved through crop-share leases or custom farming services, where we do the physical work, and you stay in the loop.

Bonus Tip: Consider Long-Term Stewardship

Your land is a legacy asset. Whether you're retiring or just looking for passive income, you want a renter who cares about:

• Soil health
• Erosion control
• Sustainable farming techniques
• Long-term land value

At Bunne Farms, we treat every field like our own—preserving fertility for generations to come.

FAQs About Renting Farmland in Minnesota

Ready to Rent Out Your Farmland the Right Way?

Whether you're in Ostrander, Fillmore County, or anywhere in Southeast Minnesota, Bunne Farms is ready to help you lease with confidence. From fair rates to full-service farming, we’ve got you covered.