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Weekly Farm Economics

Negative Cash Rent Farmland Returns Since 2014 Reduced Farmer Net Incomes

August 22, 2017
Gary Schnitkey

In recent years, many farmers have had positive incomes. However, cash rented farmland may not have been contributing to those positive net incomes. At average cash rent levels, cash rented…

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IFES 2016: Farmland Leases: A Reset Needed

December 30, 2016
Dale Lattz

Higher farm incomes that began in 2007 and continued through 2012 resulted in significant increases in cash rents. Summary data from the Illinois Farm Business Farm Management Association (FBFM) records…

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Comparing Net Returns for Alternative Leasing Arrangements

November 4, 2016
Michael Langemeier

Obtaining control of land through leasing has a long history in the United States. Leases on agricultural land are strongly influenced by local custom and tradition. However, in most areas,…

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Tenure Characteristics of Illinois Farmland

October 28, 2016
Dale Lattz

Data from the Illinois Farm Business Farm Management (FBFM) Association provides insights into leasing arrangements in Illinois. Table 1 contains data summarized from Illinois grain farms enrolled in FBFM. These…

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IFES 2015: Evaluating Rental Agreements and Land Values with Lower Prices

December 23, 2015
Nick Paulson

It is well known that cash rental levels increased considerably throughout Illinois and the entire Corn Belt region from 2006 to 2014. In 2006, the average cropland cash rent in…

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Farmland Ownership in Illinois: New Highlights from USDA Survey

September 24, 2015
Todd Kuethe

The USDA recently released the results of the 2014 Tenure, Ownership, and Transition of Agricultural Land (TOTAL). TOTAL is a special study and part of the Census of Agriculture that…

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Weekly Farm Economics

Parameters for a 2016 Cash Rent with Bonus

September 9, 2015
Gary Schnitkey

Cash rents need to be lowered to avoid farmer losses in 2016. For obvious reasons, landowners are reluctant to lower cash rents, particularly given uncertainty about 2016 revenue. Switching from…

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Farmer Returns for Cash Rent, Share Rent, and Owned Farmland

October 29, 2014
Gary Schnitkey

Returns farmers receive from rental arrangement vary across years. In some years, share rent arrangements have higher farmer returns than cash rental arrangements. In other years, cash rent arrangements have…

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Updated Farmland Values and Returns Tools – 2014

August 15, 2014
Bruce J. Sherrick

Each year, the USDA provides extensive data related to farmland values, rental rates, and other indicators of economic performance by county, state, type of agriculture and other meaningful categorizations of…

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Does More Corn Mean Higher Cash Rent?

May 16, 2014
Brandy M. Krapf, Dwight D. Raab and Bradley L. Zwilling

Last month's post (Is There an Advantage to More Corn Acres in Your Rotation?) reviewed the return and cost advantage as the corn enterprise on a farm increased in intensity.…

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The Bioenergy Farm Lease, Part 4: Incorporation of Evolving Standards

November 22, 2013
Elise C. Scott, Lauren D. Quinn, and A. Bryan Endres

As the bioenergy industry in the United States expands to meet increased demands for transportation fuel under the Renewable Fuel Standard and electrical power under state Renewable Portfolio Standards, farmers…

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Illinois Farmland Leasing Changes

October 25, 2013
Bradley L. Zwilling, Brandy Krapf, and Dwight D. Raab

Data show that Illinois farmers own from 13 to 25 percent of the land they operate. Thus, Illinois farmers rent the majority (75 to 87 percent) of the land operate.…

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Weekly Farm Economics

2013 County Cash Rents: Levels, Variability, and 2014 Cash Rent Decisions

September 10, 2013
Gary Schnitkey

Average cash rents by county were released on September 6th by the National Agricultural Statistical Service (NASS), an agency of the U.S. Department of Agriculture. These county cash rents are…

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Weekly Farm Economics

Farm Managers See More Stable Farmland Prices

September 4, 2013
Gary Schnitkey

Recently, the Illinois Society of Professional Farm Managers and Rural Appraisers conducted a mid-year survey of its membership concerning outlook for farmland price and cash rental markets. After several years…

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Weekly Farm Economics

Share-Rent Landowner Returns Compared to Cash Rents

August 13, 2013
Gary Schnitkey

Illinois Farm Business Farm Management (FBFM) data were used to calculate returns to share-rent landowners over the period from 2000 through 2012. As expected, share-rent landowners' returns increased since 2006,…

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Weekly Farm Economics

Farmland Ownership and Rental Percentages in Illinois: A 2007 to 2012 Perspective

July 23, 2013
Gary Schnitkey

Data from Illinois grain farms were used to evaluate how ownership and tenure percentages have changed over time. Between 2011 and 2012, there has been a shift away from share…

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The Bioenergy Farm Lease Part 2: Invasion Concerns

June 28, 2013
Elise C. Scott and A. Bryan Endres

As the bioenergy industry in the United States expands to meet increased demands for transportation fuel under the Renewable Fuel Standard and electrical power under state Renewable Portfolio Standards, farmers…

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The Bioenergy Farm Lease Part 1: Long-Term Leasing Provisions

June 21, 2013
Elise C. Scott and A. Bryan Endres

As the bioenergy industry in the United States expands to meet increased demands for transportation fuel under the Renewable Fuel Standard and electrical power under state Renewable Portfolio Standards, farmers…

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A Historical Perspective on Illinois Farmland Sales

May 3, 2013
Erik D. Hanson and Bruce J. Sherrick

Farmland prices have soared in recent years, leading to increased interest in farmland markets and in factors affecting farmland prices. Sales records from the Illinois Department of Revenue (IDOR) allow…

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Landlord Characteristics in the USA and in Illinois

January 25, 2013
Todd Kuethe and Jennifer Ifft

The USDA collects a large amount of information directly from farmers and ranchers across the United States. Farmers and ranchers own the majority of the land dedicated to the production…

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Rental Agreements in the USA and in Illinois

January 24, 2013
Todd Kuethe and Jennifer Ifft

The USDA collects a large amount of information directly from farmers and ranchers across the United States. Farmers and ranchers own the majority of the land dedicated to the production…

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Farmland Tenure in the USA and in Illinois

January 17, 2013
Todd Kuethe and Jennifer Ifft

The USDA collects a large amount of information directly from farmers and ranchers across the United States. Farmers and ranchers own the majority of the land dedicated to the production…

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Farmland Turnover in Illinois

November 29, 2012
Bruce J. Sherrick

There have been several very notable land sales in Illinois and surrounding states setting new high per acre sales prices in many areas, and leading to increased interest by others…

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Weekly Farm Economics

Crop Insurance and Rental Arrangements: Lessons from the 2012 Drought

November 13, 2012
Gary Schnitkey

The 2012 drought raised two issues related to crop insurance and rental arrangements. First, it appears that a significant number of share rent landlords did not take crop insurance, resulting…

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Weekly Farm Economics

Landowner and Farmer Returns under Share Rental Arrangements with Differing Prices

October 23, 2012
Gary Schnitkey

Operator and farmland returns, which represent the amount that can be split between the landowner and farmer, vary considerably with corn and soybean prices that are likely to occur over…

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