Posts tagged ‘farm cash rent’

2010 Agriculture Cash Rent Data for NW Ohio Released

The following was developed and compiled through great research conducted by Barry Ward, Ohio State University Extension , Production Business Management.

Ohio is a diverse state agriculturally and cropland values and cash rents vary tremendously across the state. Generally speaking, western Ohio cropland values and cash rents differ a fair amount from eastern Ohio cropland values and cash rents. This is due in part to one of any number of factors including land productivity and potential crop return, variability of crop return, field size, field shape, drainage, population, and ultimately the supply and demand of rented cropland in an area.

Ohio cropland values show signs of remaining stable to falling slightly in 2010 while this survey indicates cash rent levels will see little change in 2010. According to the Western Ohio Cropland Values and Cash Rents Survey bare cropland values are expected to decrease from 0.1% to 3.1% in 2010 depending on the region and land class. Cash rents are expected to range from a decrease of 1.5% to an increase of 3.19% depending on the region and land class.

Ninety-five surveys were completed, analyzed and summarized. Respondents were asked to give responses based on 3 classes of land in their area; “top” producing land, “average” producing land and “poor” producing land.

Tables show the average (Avg) (simple average) of each row, standard deviation (Std) of the data for that measure (measure of variability), average plus one standard deviation (Avg + 1 Std), and average minus one standard deviation (Avg – 1 Std). These latter two numbers reported indicate a range within which about two-thirds of the responses in the data for that measure will fall.

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April 14, 2010 at 12:55 pm

Ohio Farmland Cash Rent for 2009

Barry Ward, Ohio State University’s Leader in Production Business Management, has very recently released data for Ohio farmland cash rent.  Ward reports that Ohio cropland values are falling, with cash rents leveling off to slightly up.  Data is taken from the “Ohio Cropland Values and Cash Rents” survey, which is conducted annually. Surveyed groups include farm managers, rural appraisers, agricultural lenders, OSU Extension Educators, farmers, and Farm Service Agency personnel. Van Wert County is considered northwest Ohio, so preliminary results shown below are for Northwest Ohio (NW Results).

NW Ohio Cash Rent 2009

Table 1. NW Ohio Cash Rent predicted for 2009 (click image to enlarge table).

The table shows the simple average of the data  (Avg), as well as the standard deviation (Std) of the data for that measure. In addition, the table also shows the average plus one standard deviation (Avg+Std), and average minus one standard deviation (Avg-Std). These latter two numbers reported indicate a range within which about two-thirds of the responses in the data for that measure will fall.

The full report for Ohio is available in the February, 2009 Ohio Ag Manager Newsletter:

http://ohioagmanager.osu.edu/news/archive/2009/0209b.php

February 10, 2009 at 7:00 am 4 comments

Cash Rent of Publicly Owned Ground in Van Wert County, Ohio

Cash rent continues to dominate local conversations. In fact, during the recent Farm Tour in Van Wert County there were several references to cash rent for farmland. Several months ago, I called to get the cash rent information on Van Wert County’s publicly owned lands.

Parcel: Van Wert County Farm (adjacent to the old county home)
Acres: 305.4
Per Acre Cash Rent: $191.91
Term: 2008, 2009

Parcel: Airport
Acres: 131.6
Per Acre Cash Rent: $131.13
Term: 2007, 2008, 2009

July 25, 2008 at 7:00 am

Farm Cash Rent in Ohio – That Fickle Subject

NOTE: No podcast today. Just a good old-fashioned article.

If I had a dollar for every question I get about cash rent (also referred to as cash lease) I’d have enough money to take my entire staff out to a nice lunch . . . twice.

Contrary to popular belief, I do not tell landlords “You should be charging $X dollars per acre.” Nor do I tell farmers that they should pay $X dollars per acre. Between peer pressure, media reports, and family attorneys, there is enough information to fuel the cash rent frenzy without me getting involved. Yet I seem to be involved quite often, probably because OSU conducts cash rent surveys.

Here’s how a typical conversation goes.

Caller: What’s the cash rent for (fill in the blank). (the blank is either Van Wert County, a township, or a even a specific farm).

Andy: I don’t have detailed cash rent information specific to Van Wert County, but I do have data that is collected annually from ag lenders, FSA employees, Extension employess, farmers and landlords. This data is summarized by Barry Ward and available online (at which point I refer the caller to the online document: http://ohioline.osu.edu/ae-fact/pdf/Cropland_Values_Rents_07_08.pdf).

(I continue): Ohio survey data indicates that cash rents in the “average” cropland category equal 3.5% of land value. Rents in the “top” cropland category equal 3.7% of land value. (Every caller considers their land as ‘top quality’ , but I digress)

At this point the caller and I discuss land value, which has risen sharply over the past several months, and we do some multiplication to get ‘a number’. From that point I say: “This is a starting point for negotiation, but understand that cash rent determination should be based on many factors.”  I also add, “Would you consider a flexible arrangement for cash rent, to share the risk with the farmer?”  But frankly, most individuals that contact me want ‘a number’ that they can count on, and are not very open to flexible provisions.

I’m thanked for my time, and the call ends. That’s 99% of cash rent calls in a nutshell. I’ll save the story of the other 1% for another article.

To review flexible provisions with cash rents, I suggest reading the excellent article by Fleming and Breece at http://ohioline.osu.edu/fr-fact/0002.html or the North Central Publication http://www.extension.iastate.edu/Publications/NCR76.pdf.

July 10, 2008 at 1:00 pm


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This blog is no longer being maintained. Information on this blog may still be relevant, but for the latest agronomic information and farm management information please visit http://corn.osu.edu and http://ohioagmanager.osu.edu, respectively.

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