WOOSTER, Ohio — Unused structures on farms can be an eyesore to the owner and add to the cost of property taxes and maintenance expenses. Most farmers, however, don’t realize these barren, unused buildings could also be a dependable source of income.

The North Central Farm Management Extension Committee surveyed farmers and producers across the Midwest on farm building rental rates to help those with excess space determine appropriate rental prices. The survey, known as the Farm Building Rental Rate Survey, provides rental cost information on several different types of agriculture buildings.

“The great thing about this survey is that it’s a good document to give producers and farmers some kind of guidance to get the conversation started between themselves and a prospective tenant,” Ohio State University extension educator David Marrison said. “Farmers can use the survey results as a starting point and then personalize it and run their numbers to see if it will work in their individual situation.

“The survey shows what property owners can expect to get for various kinds of agricultural buildings, if they choose to rent those buildings. It’s the first of its kind for Midwestern states, in many years.”

The report lists a price range and an average price for various types of ag facilities and structures. For example, the average rent for a dairy milking parlor and cow housing facility is $12.16 per cow per month. But the range is anywhere from $6.25-$16.67 per cow per month.

“It’s a helpful range to see what other people are renting,” said Marrison, who added the report should be used as a reference for farmers and tenants to start a discussion, rather than to set the market. “Every rent agreement is different, and the age and condition of the buildings, the age and condition of the utilities and the responsibilities of each partner can alter the final cost of rent.”

OSU ag economist Barry Ward is part of the committee that conducted this survey. “It’s a starting point,” he said. “Whether they be the renter or rentee, it shouldn’t be something that they use as an end-all type of data point.”

Ward and his partners in this venture intended to put together a meaningful survey that represents a solid average for the Midwest. They sent the survey to farmers and ag professionals via ag lenders, extension newsletters and farmer meetings.

The survey provides data for beef, dairy and swine facilities, but also for machinery storage, grain and hay storage and rural housing. The survey assumes the owner would be responsible for major repairs and insurance coverage, while the tenant would deal with the cost of utilities, labor and minor upkeep.

Both Ward and Marrison agree a written agreement by both parties is vital. Marrison believes the idea of renting unused farm structures is on the rise, as some see these buildings as a place to either store grain or equipment.

“It’s a way to utilize an asset that’s just sitting there,” he pointed out.

According to Ward, farm operators should consider whether building or buying a facility might be less expensive in the long run, as depending on how many years the operator intends to use a particular facility it may make more sense to build something to one’s own specification. He said there can be tax advantages to building new.

“The market is heavily dependent on demand, and although there are many vacant farm buildings, only certain ones are suitable for livestock and production agriculture,” Ward cautioned.

The survey results are available online at www.aglease101.org