Decreasing 2016 Cash Rents on Professionally Managed Farmland
Gary Schnitkey, Extension Agricultural Economist - University of Illinois
Cash rents on professionally-managed farmland are set to decrease next year. That’s the conclusion of a survey in the state of Illinois. Todd Gleason has more…
Each year, the Illinois Society of Professional Farm Managers…
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Each year, the Illinois Society of Professional Farm Managers and Rural Appraisers asks its members how much, on average, they’re collecting for cash rent for the current year, and their expectations for next year. The survey provides a really good indicator of rents on professionally-managed farmland says Gary Schnitkey from the University of Illinois.
Schnitkey :16 …down $32 from the 2015 rent.
Quote Summary - We looked at that and for excellent quality farmland, 190 plus bushels per acre, the farm manages said rents in 2016 would be $318 per acre which is down $32 from the 2015 rent.
Schnitkey helps to develop the survey and tally the results. Those can be found on the Farm Doc Daily website categorized for farms with corn yields less the 150 bushels to the acre to those over 190. The move to lower cash rents is needed, and doesn’t surprise Schnitkey.
Schnitkey :34 …that farm managers say they’re charging.
Quote Summary - Farm managers rents to react more quickly to turns in operator and land returns. So, they come down and go up faster than the average cash rent. So, I am not surprised that they are coming down, but would note the amount of the decrease probably won’t leave the farmer with any return because the operator and land returns are still below the cash rent that farm managers say they’re charging.
The first year the Illinois Society collected cash rents on professionally-managed farmland was in 2007. The average was $183 per acre and $17 higher than the overall average for the state. The professional farm managers cash rent peaked at $396 in 2013. This would be the third year in a row they’ve dropped cash rents, but that trend does not translate to the state as a whole. Last year was the first year state wide cash rents in Illinois decreased.