In 2014, the latest yr for which statistics can be found, over 50% of cropland and 25% of pasture was leased, in response to the USDA Land Tenure, Possession and Transition Survey. farming lands. In complete, nearly 40% of agricultural land was leased that yr. Rental agreements are normally made within the fall of the yr earlier than planting, and using money rental agreements is extra vital in areas with a excessive focus of grain, oilseed or cotton manufacturing. Virtually 70% of all leases are fastened money leases, the place the rental price just isn’t primarily based on crop productiveness.
In 2020, the common money rental price for cropland was $ 139 an acre, down $ 1 an acre, or 0.7%, from 2019, in response to the latest August survey. on USDA money rents. Throughout america, money rental charges for cropland had been highest in areas of excessive agricultural productiveness. Virtually 70% of counties in Illinois and Iowa had money rental charges above $ 200 an acre. At $ 294 an acre, Macon County, Illinois had the best money rental charges within the nation, and eight of the highest ten counties in america with the best rental charges had been in Illinois. Grundy County, Iowa, had the best rental price within the state at $ 272 an acre.
Falling anticipated productiveness and income per acre has stored rental charges considerably decrease outdoors of the Corn Belt. For instance, in components of Texas, similar to Kimble, Webb, and Sutton counties, common cropland rental charges had been lower than $ 10 an acre.
The common money rental price for irrigated cropland was $ 216 per acre, down $ 4 per acre, or 2%, from the earlier yr. Rental charges for irrigated cropland had been highest in areas with a excessive focus of fruit, vegetable and tree nuts. In Ventura County, Calif., The common money rental price for irrigated cropland was the best within the nation, at $ 2,550 an acre. Monterrey County, California had the second highest rental price at $ 2,220 per acre.
The hire from non-irrigated cropland averaged $ 138 / acre in Wisconsin in 2020, a rise of $ 1.00 from 2019 in response to the most recent report launched by the USDA’s Nationwide Agricultural Statistics Service. Lafayette County, within the southwestern nook of the state, had the best revealed common money hire for non-irrigated cropland at $ 217 / acre, adopted by Grant County at $ 209 / acre.
For pastures, the common pasture rental price was $ 13 per acre, unchanged from 2019. In america, pasture rental charges ranged from lower than $ 10 per acre throughout a lot of the nation. western United States at over $ 80 an acre in components of Illinois and Iowa. The very best revealed pasture money hire in Wisconsin was $ 65.50 an acre in Manitowoc County in northeastern Wisconsin. Lafayette County adopted at $ 60 an acre. Rock and Dane had been the one different counties in Wisconsin above $ 50 / acre, at $ 56.50 and $ 52 respectively.
Pastures in components of the Appalachians had been additionally among the many highest within the nation and nicely above the nationwide common. Tillamook County, Oregon, and Snohomish County, Washington, led the nation with a median money rental price of $ 105 an acre for pasture.
For probably the most half, farmers use a set price money rental settlement to lease cropland. In 2020, the common money rental charges for cropland, irrigated cropland and pasture had been $ 139 per acre, $ 216 per acre and $ 13 per acre, respectively. These charges had been largely consistent with the degrees of the earlier yr.
The steadiness of spot rental charges is probably going as a result of quite a lot of components, together with Market Facilitation Program funds, designed to assist farmers get well from retaliatory tariffs, advert hoc catastrophe help to assist farmers producers affected by forest fires, hurricanes and floods lately, and elevated farm earnings. All of those components enable farmers to stay aggressive when bidding on money leases.
As 2021 approaches, the agricultural financial outlook is unsure. Non-farm incomes will definitely be decrease given the excessive ranges of unemployment after COVID-19. Nevertheless, advert hoc help via the Coronavirus Meals Help Program for Livestock, Specialty Livestock, Specialty Crops, Non-Specialty Crops, Dairy, Aquaculture, Nurseries and Floriculture Producers might assist farmers keep aggressive after they bid on money leases this fall and spring. .
John Newton is Chief Economist for the American Farm Bureau Federation