Long-Run Cash Rent Spreadsheet Tool
by Michael Langemeier
Updated October 2025
This spreadsheet uses enterprise budget information, projected yields, and projected prices to examine breakeven prices, earnings per acre, breakeven cash rents, and trends in working capital.
Farmers typically find that rental rates don’t adjust rapidly during a downturn and consequently they lose money on rented land. But most farmers don’t want to give up rented land even if it is not profitable because it is difficult to find another parcel to replace it. They continue to hold on to rented land waiting for better prices, lower costs, and/or higher yields. The fundamental question is how long can they delay the decision. In other words, when should they hold them and when should they fold them? This question has become even more relevant today, given the financial pressure currently faced by crop producers across the Corn Belt, including lower commodity prices, tighter margins, and higher interest rates. Read more on using the spreadsheet tool here!
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