Land prices and rent for farmland are still relatively high in our area. However, crop prices are the lowest they have been for several years and are projected to go lower.
To assist farmers and landowners in managing risk, the Department of Agricultural, Environmental, and Developmental Economics at Ohio State University has completed its annual survey on regional cropland values and cash rents for the 2013-14 year.
Surveys are completed by individuals knowledgeable about cropland values and rental rates, such as farm managers, rural appraisers, agricultural lenders, OSU Extension educators, farmers, landowners, and Farm Service Agency personnel. The survey was conducted from January through April.
One hundred twenty-seven surveys were completed, analyzed and summarized. Individuals were asked to give responses based on three classes of land in their area: “average,” “top,” and “poor” land.
They were asked to estimate five-year corn and soybean yields for each land class based on typical farming practices. Individuals also were asked to estimate current bare cropland values and cash rents negotiated in the current or recent year for each land class.
Ohio cropland values and cash rental rates are projected to decrease in 2014.
According to the survey, bare cropland values are expected to decrease from 4 percent to 5.4 percent, depending on the region and land class. Cash rents are expected to decrease from 0.1 percent to 3.1 percent, depending on the region and land class.
Survey results are not available for individual counties, but by region. Hancock, Putnam, Hardin and Wyandot are part of the 19 counties included in the northwestern Ohio section.
For northwestern Ohio land considered average, the corn yield average is 162.9 bushels per acre and soybean yield average is 49 bushels per acre.
Top cropland has corn yield averages of 192.4 bushels per acre and 60.3 bushels for soybeans.
Poor cropland would have an average yield of 135.3 bushels for corn and 37.8 bushels for soybeans.
The survey showed that cropland that is considered in the average category is expected to be valued at $7,009 per acre in 2014, a 4.3 percent decrease from last year. Land rental rates are expected at $187 per acre, or 2.7 percent less than last year.
For top cropland, the survey shows a 5.4 percent land price drop from last year at an expected price of $8,389 per acre. The rental rate averages for this year are expected to be $240 per acre, dropping from $245 per acre.
In the poor cropland category, the survey shows a projected drop of 5.3 percent in land prices this year, compared to last year, averaging $5,455 per acre.
The land rental rate for poor cropland is expected to be flat at $140 per acre.
This survey is only one tool to establish a price agreement for farmland sales and rental rates. Markets are often localized and based on many factors that a survey cannot measure.
The survey results, summary, and more detailed information may be found at: http://aede.osu.edu/about-us/publications/western-ohio-cropland-values-and-cash-rents-2013-14
Lentz is extension educator for agriculture and natural resources for The Ohio State University Extension Service in Hancock County. He can be reached at 419-422-3851 or via email at firstname.lastname@example.org.
Lentz can be heard with Vaun Wickerham on weekdays at 6:35 a.m. on WFIN, at 5:43 a.m. on WKXA-FM, and at 5:28 a.m. at 106.3 The Fox.
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