As commodity prices fell over the past few years, many landowners across the country agreed to lower cash rents. The annual LandOwner/Pro Farmer Cash Rent and Values Survey shows a majority of the respondents expecting cash rents to continue their lower trend in 2018.
LandOwner consultant and columnist Mike Walsten says the survey also shows the focus on lowering cash rents in the year ahead will likely lessen when compared to the past few years. “53 percent of the survey respondents say they expect cash rents to continue their decline in 2018,” Walsten says. “While that’s still a majority, it’s down sharply from 74 percent last year, and 73 percent in 2015.” The percentage of respondents expecting cash rents to stay the same as last year rose to 45 percent, up from 24 percent last year and 21 percent in 2015.
Walsten says, “The boost in respondents expecting no change in their rental rates this coming year might be an indication that the bottom in cash rental rates may be near.”