Ohio Cropland Values and Cash Rents, 2007-08

Introduction

Landowners, prospective buyers, farmers and lenders often seek baseline data and trend data with which to base their buy/sell and rental decisions upon. A survey is conducted annually drawing on the expertise of numerous professionals that are knowledgeable of Ohio ‘s cropland markets. Surveyed groups include farm managers, rural appraisers, agricultural lenders, OSU Extension Educators, farmers and Farm Service Agency personnel.

Surveying these agricultural professionals is an attempt to capture unbiased data for evaluating cropland value and cash rents. One hundred twenty-nine surveys were completed, analyzed and summarized. Respondents were asked to give responses based on 3 classes of land in their area; “Top” producing land, “average” producing land and “poor” producing land. The survey results are summarized in Tables 1 and 2.

This survey found that in 2007, Ohio cropland averaged $4456.56 per acre for top land, $3703.60 for average land and $2933.61 for poor land. Top land averages 183.92 bushels of corn per acre, 59.98 bushels of soybeans per acre and rented for $141.37 per acre. Average land yields on average 149.82 bushels of corn per acre, 47.46 bushels of soybeans per acre and rented for $111.47 per acre. Poor cropland averages 117.91 bushels of corn per acre, 35.35 bushels of soybeans per acre and rents for $85.45 per acre.

Respondents were also asked to give their projections of land values and cash rents for 2008. For 2008 land values in Ohio are projected to average $4685.20, $3921.58 and $3123.49 per acre for “Top”, “Average”, and “Poor” land, respectively.

Ohio Results

Top Cropland

Survey results indicate that “top” performing cropland in Ohio averages 183.92 bushels of corn per acre. Results also show that average value of “top” cropland in 2007 was $4456.56 per acre. According to this survey “top” producing cropland in Ohio is expected to be valued at $4685.20 in 2008. This is a projected increase of 5.13%.

“Top” crop land in Ohio rented for an average of $141.37 per acre in 2007 according to survey results. “Top” cropland is expected to rent for $156.88 in 2008. This equates to a cash rent of $0.85 per bushel of corn produced. Rents in the “top” cropland category are expected to equal 3.35% of land value in 2008.

Average Cropland

Survey results for “average” production cropland show an average yield to be 149.82 bushels of corn per acre. Results show that the value of “average” cropland in Ohio was $3703.60 per acre in 2007. According to survey data this “average” producing cropland is expected to be valued at $3921.58 per acre in 2008. This is a projected increase of 5.89%.

“Average” cropland rented for an average of $111.47 per acre in 2007 according to survey results. “Average” cropland is expected to rent for $123.50 per acre in 2008. This equates to a cash rent of $0.82 per bushel of corn produced. Rents in the “average” cropland category are expected to equal 3.04% of land value in 2008.

Poor Cropland

The survey summary shows the average yield for “poor” performing cropland equals 117.91 bushels of corn per acre. Results also show that the average value of “poor” cropland was $2933.61 per acre in 2007. According to survey data this “poor” producing cropland is expected to be valued at $3123.49 in 2008. This is an increase of 6.47%.

“Poor” cropland rented for an average of $85.45 per acre in 2007 according to survey results. Cash Rent for “Poor” cropland is expected to average $94.82 per acre in 2008. This equates to a cash rent of $0.80 per bushel of corn produced. Rents in the “poor” cropland category equal 2.91% of land value.

Northwest Ohio Results

Top Cropland

Survey results indicate that “top” performing cropland in northwest Ohio averages 182.22 bushels of corn per acre or 60.0 bushels of soybeans per acre. Results also show that the average value of “top” cropland was $4040.57 per acre in 2007. According to this survey “top” producing cropland in northwest Ohio is expected to be valued at $4250.94 in 2008. This is a projected increase of 5.21%.

“Top” crop land in northwest Ohio rented for an average of $141.02 per acre in 2007 and is expected to rent for $156.17 in 2008 according to survey results which equals $0.86 per bushel of corn produced. Rents in the “top” cropland category are expected to equal 3.67% of land value.

Average Cropland

Yields for “average” production cropland are 149.09 bushels of corn per acre or 47.55 bushels of soybeans per acre. Results show that the value of “average” cropland in northwest Ohio was $3417.59 per acre in 2007. According to survey data this “average” producing cropland is expected to be valued at $3637.04 per acre in 2008. This is a projected increase of 6.42%.

“Average” cropland rented for an average of $111.39 per acre in 2007 according to survey results and is expected to rent for $125.69 in 2008 which equals $0.84 per bushel of corn produced. Rents in the “average” cropland category are expected to equal 3.46 % of land value in 2008.

Poor Cropland

The survey summary shows the average yield for “poor” performing cropland in northwestern Ohio equals 117.82 bushels of corn per acre or 35.33 bushels of soybeans per acre. Results also show that the average value of “poor” cropland was $2761.32 per acre in 2007 and is expected to average $2946.70 per acre in 2008. This is an increase of 6.71%.

“Poor” cropland rented for an average of $86.76 per acre in 2007 and is expected to average $97.50 per acre in 2008 according to survey results which equals $0.83 per bushel of corn produced. Rents in the “poor” cropland category are expected to equal 3.31% of land value in 2008.

The northwest region for the purposes of this survey includes: Williams, Fulton , Lucas, Ottawa , Defiance , Henry, Wood, Sandusky , Paulding, Putnam, Hancock, Seneca, Van Wert, Allen, Hardin, Wyandot, Crawford, Marion and Morrow Counties .

Southwest Ohio Results

Top Cropland

Survey results indicate that “top” performing cropland in southwest Ohio averages 185.51 bushels of corn per acre or 60.35 bushels of soybeans per acre. Results also show that average value of “top” cropland was $4961.54 per acre in 2007. According to this survey “top” producing cropland in southwest Ohio is expected to be valued at $5213.65 in 2008. This is a projected increase of 5.08%.

“Top” crop land in southwest Ohio rented for an average of $156.44 per acre in 2007 and is expected to rent for $174.92 per acre in 2008 according to survey results which equals $0.94 per bushel of corn produced. Rents in the “top” cropland category are expected to equal 3.36% of land value in 2008.

Average Cropland

Yields for “average” production cropland equal 152.81 bushels of corn per acre. Results show that the value of “average” cropland in southwest Ohio was $4092.16 per acre. According to survey data this “average” producing cropland is expected to be valued at $4297.22 per acre in 2008. This is a projected increase of 5.01%.

“Average” cropland rented for an average of $126.41 per acre in 2007 and is expected to rent for $137.55 per acre in 2008 according to survey results which equals $0.90 per bushel of corn produced. Rents in the “average” cropland category are expected to equal 3.20 % of land value in 2008.

Poor Cropland

The survey summary shows the average yield for “poor” performing cropland in southwestern Ohio equals 122.56 bushels of corn per acre. Results also show that the average value of “poor” cropland was $3157.61 per acre. According to survey data this “poor” producing cropland is expected to be valued at $3350.65 per acre in 2008. This is an increase of 5.01%.

“Poor” cropland rented for an average of $97.77 per acre in 2007 and is expected to average $106.30 per acre in 2008 according to survey results which equals $0.87 per bushel of corn produced. Rents in the “poor” cropland category are expected to equal 3.17% of land value in 2008.

The southwest region for the purposes of this survey includes: Mercer, Auglaize, Shelby , Logan , Union , Delaware , Darke, Miami , Champaign , Clark, Madison , Franklin , Preble, Montgomery , Greene, Butler , Warren , Hamilton , Clermont, Clinton , Fayette and Pickaway Counties .

Summary

This study will add to existing research on Ohio farmland values and cash rents that can assist producers and landowners with purchase and rental decisions. Existing research includes:

Ohio Cropland Values and Cash Rents 2006-07 at:

http://ohioline.osu.edu/ae-fact/pdf/cropland.pdf

Ohio Farm Real Estate Markets at:

http://aede.osu.edu/resources/docs/pdf/C2V16S20-H8CG-UEFY-JGL2H3JPU7Y1PO5J.pdf

Land Rental Rates: Survey Results and Summary at: http://vanwert.osu.edu/ag/landrentalrates.pdf and companion Cash Rent Calculator at:

http://vanwert.osu.edu/ag/calculator.htm

Also, check with your local OSU Extension Office for local land value/rental survey summaries. For additional information on farmland lease issues see the Department of Agricultural, Environmental and Development Economics (AEDE) Farm Management webpage at: http://aede.osu.edu/Programs/FarmManagement/MgtPublications.htm

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