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Farmers are optimistic about cash rental rates, overall farmland values

Many farmers are expecting cash rental rates to rise in 2022, according to the latest Ag Economy Barometer.

Purdue University’s Jim Mintert says “producers continue to tell us that they expect to see some higher cash rental rates on corn and soybean farmland in 2022, versus 2021…roughly 50 percent of the producers in the survey say they think we’ll see higher cash rental rates.”

And, he says farmers are also optimistic about the short- and long-term outlook of farmland values.

“The Short-Term and Long-Term Farmland Values Expectations Indices both rose four points in August,” he says. “…people are still pretty bullish about where farmland values are headed and that’s on top of the fact that farmland values have already risen a good bit over the last 12 months.”

The Purdue University/CME Group Ag Economy Barometer is a monthly national survey of 400 U.S. agricultural producers.