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!

TAGS:

TEAM LINKS:

RELATED RESOURCES

Farm Absorption Capacity and Producer Sentiment

November 9, 2026

If crop prices slip or input costs climb, how much room does your farm have to adjust? Use a three-question scorecard to assess your fixed costs per unit, enterprise mix and balance sheet. Then see how your score compares with responses from 400 producers in the October 2026 Ag Economy Barometer survey.

Convergence of Financial Performance

October 29, 2026

Do larger crop farms have a financial advantage over smaller operations? FINBIN data from 2007 to 2025 reveal where farm size matters most, and where it doesn’t.

How Much Could Corn Prices Raise Hog Feed Costs in 2027?

October 13, 2026

Corn prices can have a substantial impact on swine finishing feed costs. Michael Langemeier explains what different corn and soybean meal price scenarios could mean for hog feed costs and margins in 2027.

UPCOMING EVENTS

ARC/PLC 2026: Making Your Crop Risk Management Decision

Compare PLC, ARC-CO and ARC-IC before making your 2026 farm program election. Join Purdue’s Michael Langemeier November 16 for a free webinar covering the pros and cons of each option, with time for Q&A.

Top Farmer Conference 2027

January 8, 2027

A management programs geared specifically for farmers. Surrounded by farm management, farm policy, agricultural finance and marketing experts, and a group of your peers, the conference will stimulate your thinking about agriculture’s future and how you can position your farm to be successful in the years ahead.