Cropland Rental Rates July 2015

Cropland Rental Rates July 2015

2015 Nebraska Cropland Rental Rates

July 9, 2015

Corn field with a farmstead in the background

UNL's 2015 Farm Real Estate Survey indicates that dryland and irrigated cropland rental rates dropped 3%-10% from 2014. (Source: IANRNews photo)

 

 

The recently published Nebraska Farm Real Estate Market Highlights 2014-2015 report indicates dryland and irrigated cropland rental rates on average declined about 5% to 10% in Nebraska. Panel members indicated current crop prices as the driving force behind these lower cropland rental rates. The average rental rates for dryland and irrigated cropland are listed in Table 1. A list of counties in each Agricultural Statistics District of Nebraska can be found in the full report.

Rental rates for dryland and irrigated cropland vary across the state depending upon the district. Higher dryland cropland rental rates generally were focused in the eastern third of Nebraska compared to the western two-thirds of the state. Gravity and center-pivot irrigated cropland followed similar trends across the state. Local market forces along with inherent attributes of the ground are two of the major factors contributing to the rental rates paid by agricultural producers across Nebraska. With lower expected crop prices in 2015 landlords and tenants must remember to negotiate a rate that is viable for both parties involved.

Survey results shown and discussed in this article are an excerpt from the University of Nebraska–Lincoln 2015 Nebraska Farm Real Estate Market Survey. Land values and rental rates presented in the annual publication are averages of survey panel members' responses by district. Actual land values and rental rates may vary depending upon the quality of the parcel and local market for an area. Complete results from the survey are available electronically via the Nebraska Farm Real Estate website: agecon.unl.edu/realestate.

Related Programs

Nebraska Extension will be hosting Landlord/Tenant Cash Lease workshops across the state, beginning Aug. 10. For more information and a schedule see cropwatch.unl.edu/2015-landlord-tenant-workshops.

Jim Jansen, (402) 254-6821
Extension Educator
Roger Wilson, (402) 472-1771
Budget Analyst and Farm Management Specialist
Co-authors of the Nebraska Farm Real Estate Market Developments survey



Table 1. Reported Cash Rental Rates for Various Types of Nebraska Farmland and Pasture: 2015 Averages, Percent Change from 2014 and Quality Ranges by Agricultural Statistics Districta (Source: Nebraska Farm Real Estate Market Highlights 2014-2015
Type of Land Agricultural Statistics District
Northwest North Northeast Central East Southwest South Southeast
  --- Dollars Per Acre ---
Dryland Cropland
Average 35 65 235 105 205 45 85 170
% Change -13 -7 -4 -5 -5 -10 -6 -3
High 50 85 305 140 255 60 115 215
Low 25 40 175 85 155 30 65 130
Gravity Irrigated Cropland
Average 135 195 285 235 300 185 220 255
% Change -7 -5 -2 -6 -5 -3 -2 -14
High 180 230 335 270 355 225 270 310
Low 75 155 225 195 260 145 175 225
Center Pivot Irrigated Croplandb
Average 175 235 365 245 330 250 255 300
% Change -13 -6 -1 -6 -7 -18 -6 -10
High 295 275 430 295 385 310 330 360
Low 150 190 285 215 270 225 240 265
Source:  a Reporters' estimated cash rental rates (both averages and ranges) from the UNL Nebraska Farm Real Estate Market Survey, 2015.
b Cash rents on center pivot land assume landowners own total irrigation system.