News
Illinois cash rent expected to decrease slightly in 2020
The Illinois Society of Professional Farm Managers and Rural Appraisers predicts a slight decline in average cash rent for the state in 2020.
Dale Lattz with the University of Illinois outlined the data in a farmdoc webinar Friday.
“Although we are a little more stable than what we have seen, there is still pressure on rents due to the tighter income levels or lower income levels from the good times that we had.”
The ISPFMRA has excellent productivity land going from $302 per acre in 2019 to $298 in 2020; Good productivity land dropping from $261 to $254; Average land going from $212 to $205; and fair land with a slight decrease from $170 to $167 per acre in 2020.
Lattz says land productivity is determined by soil and yields.
“For excellent ground the soil productivity is above 133 or basically has an average corn yield of 220 bushels per acre or more. The good ground would have average corn yields of 180 to 220 bushels. Average would have 160 to 180 and fair would be below that.”
Colleague Gary Schnitkey says the possibility of trade resolutions with China and higher corn prices could positively affect rental rates, while higher production costs in 2020, yields and soybean prices could have a negative impact.
Is there a site or organization that can help me find cash rental prices for soybeans based on productivity levels (e.g., bushels of yield per acre? I have found your article from 2018 and it was most helpful relative to corn. I am really trying to be a responsible farm land owner by partnering with and being fair (if not generous) to the farmer leasing from me.