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Cash rents holding on in Indiana, Ohio

Cash rents have started to decline, but Dennis Badger with Farm Credit Mid-America says they still aren’t at levels that correlate with grain prices.

He says there is reason behind landowners’ hesitancy to lower cash rents.  “Most landowners still have to contend with property tax rates that have been increasing over the past two to three years,” he says.  “They’re still catching up to the trends that we saw with double digit increases in property values for a period of time.”

He says both farmers and landowners are looking at alternative options – one of which has been around for several years.  “Flexible lease arrangements where the actual yield of the grain product would parlay into their gross income at harvest,” he says.

AUDIO: Dennis Badger, Farm Credit Mid-America