cash rent prices

Mark Bade · Jul 4, 2011

How do those of you that cash rent determine a fair price. The land we are looking at is in southern St. Charles county Mo. Nobody wants to say what they are paying for rent close by. The only thing I have found is that crp contracts close by is paying $78-$80 acre. We are looking at 45-50 acres on one farm and 55-60 acres on the farm next door. Unfortunatley to get from on to the other is about 8 miles by road.

kyhayman · Jul 4, 2011

When I was an undergrad I took a class on rural real estate appraisal. One of the figures we used was estimated cash rent value. Range we used then was 1.5 to 4.00 percent of the per acre value of the land with a nominal value of 3.0. That plus appreciation gave you the land owner your return on investment. Looking at land prices and rents over the years thats seemed to be pretty close around here. 3000 dollar an acre land renting for 90.00 per acre.

Another figure I've seen, and its actually the one I use on land I rent out, 33 percent of the projected gross income from the acre. If I have to put in inputs then I want more than that but for straight rent that seems fair to me. I dont cash rent in at all, custom work by the bale or hour sure, cut something for the hay, maybe.

greenbeanman in Kansas · Jul 4, 2011

Can you find out from one of the farm management groups, often through the extension service or university? Here in Kansas one can get a gratis copy at the county extension service. That way it will be area specific.

jackinok · Jul 5, 2011

I think it varies a large amount by location,and the intended use.personally i have rented some of my pasture land out to a neighbor in western okla for $5000 yr for the 500 acres.good level farm land brings twice or three times that.but this is 30 bushel wheat country also.I think i would check around more closer to you.asking folks about this kind of stuff is about like asking what price he got at the elevator though!lol

paul · Jul 5, 2011

Hard to say, here some CRP land is $100 too, as it's marginal land. Good corn & bean ground next to it will bring $200-400 these days.

--->Paul

aFORDable · Jul 11, 2011

You may not see this post since I am a few days late but I rent mine out for $120/acre. That is the going rate around here (W. Ky.) give or take $10. Talk to neighbors or other farmers if you know any well enough. That"s the only way I know of that you"ll find out for sure.

NEIADan · Jul 17, 2011

Cash rents here in our area are 4-5% of land value. The $6-8,000/acre land is renting from $250 to $400. I like to look at projected productivity and figure one-third of the crop value as rent. If the crop insurance is 180 bu/acre on the proven yields then I simply figure one third of that at 60 bushell times the estimated or contractable price. For 2012 we can get $5.90 on corn today allowing us to pay $354/acre. Which falls i line with the farmland value method.

cash rent prices

Mark Bade

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kyhayman

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greenbeanman in Kansas

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jackinok

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paul

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aFORDable

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NEIADan

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