Long-run Cash Rent

by Michael Langemeier

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.

TAGS:

TEAM LINKS:

RELATED RESOURCES

Comparing Net Returns for Alternative Leasing Agreements

September 2, 2022

Obtaining control of land through leasing has a long history in the United States.  Leases on agricultural land are strongly influenced by local custom and tradition.  However, in most areas, landowners and operators can choose from several types of lease arrangements.  With crop share arrangements, crop production and often government payments and crop insurance indemnity payments are shared between the landowner and operator.  These arrangements also involve the sharing of at least a portion of crop expenses.  Fixed cash rent arrangements, as the name implies, provide landowners with a fixed payment per year.  Flexible cash lease arrangements provide a base cash rent plus a bonus which typically represents a share of gross revenue in excess of a certain base value.  Each leasing arrangement has advantages and disadvantages.

READ MORE

Indiana Farmland Values & Cash Rental Rates: 2022 Update Webinar

August 24, 2022

Recorded August 24 | Purdue ag economists break down the Purdue Farmland Values and Cash Rents Survey results and the USDA Land Values report.

READ MORE

Indiana Farmland Prices Grow at Record Pace in 2022

August 10, 2022

It is safe to say that the last year was unlike any other in recent memory. The COVID-19 pandemic caused significant disruption to our lives and the global economy. Surprisingly, many of the current economic forces put upward pressure on farmland prices.

READ MORE

UPCOMING EVENTS

Monthly Corn & Soybean Outlook Webinar Series

Webinar each month following USDA’s release of the updated World Agricultural Supply and Demand Estimates (WASDE). Catch the next monthly update September 16th for the corn and soybean outlook following release of USDA’s September Crop Production and World Agricultural Supply and Demand Estimates (WASDE) reports. Registration is free.

Read More