Farmland cash rent rates remain stable in 2020, according to a Market Intel analysis by the American Farm Bureau Federation. The analysis found that during 2020, the average cash rental rates for cropland, irrigated cropland and pastureland were $139 per acre, $216 per acre and $13 per acre, respectively. These rates were mostly in line with prior-year levels.
AFBF Chief Economist John Newton says the stability in cash rental rates is likely due to various factors, including Market Facilitation Program payments, ad hoc disaster aid and increased off-farm income. All of these factors allow farmers to remain competitive when bidding for cash lease agreements. However, Newton writes, “Moving into 2021, the farm economic outlook is uncertain.”
Off-farm income is certain to be lower given the high levels of unemployment following COVID-19. However, support through the Coronavirus Food Assistance Program could help farmers remain competitive when bidding for cash rental agreements this fall and into the spring.
(From the National Association of Farm Broadcasters)