Farm Rents

Farm Office Live to be held on April 19 from 10:00 a.m. to 12:00 noon

OSU Extension and the Farm Office Team is pleased to be offering the “Farm Office Live” webinar on Friday, April 19, 2024 from 10:00 to 12:00 noon

This month’s webinar will feature the following topics:

  • CAT Tax – Closing Accounts
  • Taxation of Equipment Trade-ins
  • 2024 Crop Input Outlook
  • OSU Fertilizer Survey Q2 Release
  • Dairy Margin Coverage Program
  • Beginning Farmer Tax Credit Update
  • Transferring Operating Assets
  • Beneficial Ownership Reporting Update
  • Trends in Farm Appraisals

Featured presenters will include: Jason Hartschuh (OSU Field Specialist- Dairy Management and Precision Livestock), Clint Schroeder (Program Manager – Farm Business Analysis), Robert Moore (OSU Ag and Resource Law Program), Amanda Bennett (OSU Extension Educator), Barry Ward and Jeff Lewis (OSU Income Tax School Program), and David Marrison and Eric Richer  (OSU Field Specialists -Farm Management) and special guest Tim Harpster.

To register for this program (or to access replays of previous programs):

go.osu.edu/farmofficelive

Ohio Farm Numbers, Land in Farms, and Agricultural Land Lost to Development

By: Professor Ani Katchova, Farm Income Enhancement Chair and PhD students Xiaoyi Fang and Rae Ju in the Department of Agricultural, Environmental, and Development Economics (AEDE) at the Ohio State University.

Click here to access the pdf version of the report.

According to the Census of Agriculture, the number of farms in Ohio decreased from 77,797 farms in 2002 to 76,009 farms in 2022, a decrease of 2.3% over the 20-year period.  Land in farms in Ohio decreased from 14,583,435 acres in 2002 to 13,652,346 acres in 2022, leading to a loss of 931,089 acres between 2002 and 2022, representing a 6.4% decrease.

According to the National Land Cover Database (NLCD) of the Multi-Resolution Land Characteristics Consortium using satellite imagery data (https://www.mrlc.gov/eva/), 355,085 acres in agricultural land (cultivated crops and pasture/hay) were lost in Ohio from 2001 to 2021. Specifically, 180,691 acres of agricultural land in Ohio was lost to development, which represents 51% of the agricultural land loss being attributed to development from 2001 to 2021.

Counties located in Metropolitan Statistical Areas (MSAs) had among the largest percentage declines in farm numbers (by about 35%) and land in farms (by about 35% to 65%) and among the highest percentages of agricultural land lost to development (above 65%) across the state of Ohio.

 

OSU Extension Farm Office Live to be held on Friday, March 15 from 10:00 to 12:00 noon

OSU Extension and the Farm Office Team is pleased to be offering the “Farm Office Live” webinar on Friday, March 15, 2024 from 10:00 to 12:00 noon

This month’s webinar will feature the following topics:

  • 2nd Marriages and Transition Planning
  • Legislative Update
  • New Rule for Independent Contractors
  • 2024 Crop Input Outlook
  • Industry Panel on WASDE and Strategies for the 2024 Grain Marketing Plan
  • Hot Topics
  • Upcoming Programs

Featured presenters will include: Robert Moore and Peggy Hall (OSU Ag and Resource Law Program), Barry Ward and Jeff Lewis (OSU Income Tax School Program), and Bruce Clevenger  (OSU Field Specialist -Farm Management).

To register for this program (or to access replays of previous programs):

go.osu.edu/farmofficelive

Ohio Farmland Leasing Update webinar is March 1

OSU Extension to host Eastern – Ohio Small Farm Conference – April 6, 2024 at the Mid – East Career Technical Center Buffalo Campus, Senecaville, Ohio

By: Julie Wayman, Community Development Educator -OSU Extension Ashtabula County

Ohio State Extension announced plans to host a Small Farm Conference in Senecaville, Ohio on April 6, 2024. The theme for this year’s Mid-Ohio Small Farm Conference is “Sowing Seeds for Success.”

Click here to access 2024 Small Conference Brochure

Conference session topics are geared to beginning and small farm owners as well as to farms looking to diversify their operation. There will be five different conference tracks including: Horticulture and Produce Production, Business Management, Livestock, Natural Resources and new this year The Farm Kitchen.  Some conference topic highlights include: Raising Meat Rabbits, Making Goat Milk Soap, Timber Harvesting and Marketing, Basics of Growing PawPaw’s, Food Preservation Basics, Herb Vinegars, Organic Pest Management, Growing Produce with Hydroponics, Starting and Setting up a business, Solar and Wind Leasing.

Anyone interested in developing, growing or diversifying their small farm is invited to attend including market gardeners, farmers market vendors, and anyone interested in small farm living. Attendees will have the opportunity to browse a trade show featuring the newest and most innovative ideas and services for their farming operation. The conference provides an opportunity to talk with the vendors and network with others.

The Conference will take place from 8:30 a.m. – 3:30 p.m. at the Mid – East Career Technical Center – Buffalo Campus located at 57090 Vocational Road Senecaville, Ohio 43780

The registration fee for this all day conference is $100 per person. For conference and registration information call OSU Extension Morrow County 419-947-1070, or OSU Extension Knox County 740-397-0401.

Please follow this link to register for the conference: https://go.osu.edu/2024osusmallfarmconference

 

 

 

 

Ohio Crop Production and Enterprise Benchmarking for 2022

By: PhD student Xiaoyi Fang and Professor Ani Katchova, Farm Income Enhancement Chair, in the Department of Agricultural, Environmental, and Development Economics (AEDE), and Clint Schroeder, Farm Business Analysis Program Manager, Ohio State University Extension.

Click here to access the pdf version of the report

The Ohio Farm Business Analysis and Benchmarking Program, conducted by the Ohio State University Extension, offers benchmark reports for Ohio farms, summarizing farm business management, particularly in crop production. These reports provide insights on 38 key measures from crop enterprise analysis, covering income, expenses, and efficiency measures. In 2022, the program included 36 corn enterprises and 31 soybean enterprises, allowing participants to compare their performance against similar Ohio enterprises. Benchmark reports are tailored to crop type (corn or soybeans) and land tenure (owned or cash rented). The data on physical production, gross returns, direct and overhead costs, and net returns per acre offers valuable insights to farmers.

Corn and Soybean Production for Owned Land and Cash Rented Land

In 2022, 16 Ohio corn producers with owned land, with an average of 127 acres per enterprise for corn production, had a yield of 191.96 bushels per acre and an average corn value of $5.98 per bushel. This resulted in an average gross return of $1155.89 per acre. For the 20 corn enterprises on cash rented land in Ohio, the average enterprise size was 195.87 with a yield of 188.78 bushels per acre and a corn value of $6.10 per bushel, leading to an average gross return of $1166.69 per acre.

In Ohio, 12 soybean enterprises on owned land operated at an average of 133.47 acres in 2022. They had a gross return of $704.13 per acre, with a yield of 51.43 bushels per acre and an average soybean value of $13.6 per bushel. The 19 soybean enterprises on cash rented land had an average operation size of 279.3 acres. These enterprises earned an average return of $769.33 per acre, with a yield of 55.08 bushels per acre and an average value of $13.79 per bushel.

Direct Expenses of Crop Production

For cash rent corn enterprises, the cost of production for corn was $5.43 per bushel in 2022, including labor and management charges. Direct expenses averaged $807.45 per acre, with around 60% allocated to land rent, seed, and fertilizer.

Likewise, for cash rent soybean enterprises, the cost of production for soybeans was $11.81 per bushel, also including labor and management charges. Direct expenses averaged $520.91 per acre, with around 30% allocated to land rent.

For enterprises with owned land, the cost of production for corn was $5.36 per bushel in 2022, including labor and management charges. Direct expenses averaged $712.29 per acre, with more than half allocated to seed and fertilizer.

Similarly, for soybean enterprises with owned land, the cost of production for soybeans was $11.77 per bushel, also including labor and management charges, with direct expenses averaging $366.74 per acre.

Enterprises with owned land typically incur lower overall production costs per bushel for both corn and soybeans compared to cash rent enterprises. Cash rent enterprises incur higher direct expenses per acre for both crops, primarily due to significant land rent costs. Notably, corn production tends to be less costly per bushel than soybean production for both enterprise types. Land rent is a crucial cost component for cash rent enterprises but is not a direct expense for owned land enterprises.

Government Payments for Crop Production

In 2022, government payments for corn producers on cash rented land averaged $4.09 per acre, while soybean producers received an average of $2.23 per acre.

Government payments for corn producers on owned land averaged $2.47 per acre. Conversely, due to the small sample size, government payments were not reported by the 12 soybean enterprises on owned land.

The Bottom Line of Crop Production

For Ohio’s owned land corn enterprises in 2022, net returns averaged $119.62 per acre, considering all direct, overhead and management expenses, as well as contributions from government payments. Notably, the net returns were lower than those observed in corn enterprises on cash rented land, where the net return over labor and management stood at $127.28 per acre. The net returns for soybeans on owned land were $94.26 per acre, which were lower than the net returns of $109.13 per acre for soybean enterprises on cash rented land.

References:

Schroeder C. and Shoemaker, H. ”2022 Ohio Farm Business Summary.” Ohio State University Extension, September 2023.

Regional Ag Outlook and Policy Meetings Set for 2024

By: Mike Estadt, OSU Extension estadt.3@osu.edu

Ohio State University Extension will present its 2024 Regional Agricultural Outlook and Policy Meetings starting in late January and continuing into February. OSU Extension is the outreach arm of Ohio State’s College of Food, Agricultural, and Environmental Sciences, and the main sponsor of the meetings. Economists from the CFAES Department of Agricultural, Environmental, and Development Economics, Extension specialists in tax policy, ag law and meteorology, along with other college specialists and invited guests, will serve as speakers.

Held throughout the state, the outlook meetings will address agricultural topics of interest not only in Ohio, but across the Corn Belt as well. Programs will include presentations on grain market outlook; the dairy industry; agricultural law updates; Ohio’s changing climate; energy outlook, international economic outlook, farm real estate values and cash rent trends; grain transportation infrastructure; agricultural input price projections; and federal tax updates. Bearish price projections, world conflicts and lower farm income projections make these program important as you plan for the year ahead. University experts and industry representatives will give the latest information on what to expect.  “Outlook meetings have useful take- aways that I have seen farm managers use directly for the upcoming season and planning for the future of the farm business.  Farmers are the CEOs of their farm and collecting unbiased information and putting it into action is essential for success”, according to Bruce Clevenger, Extension Farm Management Field specialist.

Here is a current list of Extension opportunities for ag policy, outlook and grain marketing topics. Check with the local contacts for more information regarding specific topics and times.

January 22, 2024- Friendly Hills Camp and Conference Center, Zanesville, Ohio.

Contact: Clifton Martin (martin.2422@osu.edu)

https://go.osu.edu/2024dinner

 

January 23, 2024- Jewell Community Center, Defiance , Ohio

Contact: Kyle Verhoff (Verhoff.115@osu.edu)

https://defiance.osu.edu/events/2024-farm-outlook-meeting

 

January 23, 2024- Napoli’s Pizza, Belpre, Ohio

Contact: Ed Brown (brown.6000@osu.edu)

https://go.osu.edu/SEcrops

 

January 25th, Plaza Inn, 491 S. Main St. Mt. Victory Ohio.

Contact Mark Badertscher (Badertscher.4@osu.edu)

https://hardin.osu.edu/sites/hardin/files/imce/Tillage%20Club%20Flyer%202024.pdf

 

January 30, 2024, 2022- Emmett Chapel, Circleville, Ohio.

Contact: Mike Estadt (estadt.3@osu.edu)

web: https://go.osu.edu/pickawayoutlook

 

February 6, 2024 Allen County Fairgrounds-Youth Activities Building.

Contact: Nic Baumer (baumer.15@osu.edu)

https://u.osu.edu/allenanr/upcoming-programs/ag-outlook-and-agronomy-day/

 

February 23, 2004- Der Dutchman Restaurant, Plain City, Ohio.

Contact: Wayne Dellinger (Dellinger.@osu.edu) web:

https://go.osu.edu/TriCountyOutlook

 

Farm Office Live Webinar to be Held November 17 from 10:00 to 11:30 a.m.

The OSU Extension Farm Office Team is pleased to be offering a “Farm Office Live” Zoom webinar on Friday, November 17 from 10:00 to 11:30 a.m.

This month’s webinar will feature the following topics:

  • Ohio’s role in organic grain production – Eric Richer, OSU Extension Field Specialist, Farm Management  
  • Using Charitable Remainder Trusts – Robert Moore, Attorney and Research Specialist, OSU Agricultural and Resource Law Program
  • Agronomy and Farm Management Podcast – Josh Winters, OSU Extension Educator and Bruce Clevenger, OSU Extension Field Specialist, Farm Management 
  • Farm Business Analysis — Clint Schroeder, Program Manager, OSU Extension Farm Business Analysis Program
  • Farmer Mental Health Concerns and Resources — Bridget Britton, Behavioral Health Field Specialist, Agriculture and Natural Resources
  • Foreign Ownership of Farmland – Panel discussion — Peggy Hall (Attorney and Director, OSU Agricultural & Resource Law Program) with Micah Brown (Attorney with National Agricultural Law Center)

To register for this program (or to access replays of previous programs):

go.osu.edu/farmofficelive

More information about this program can be accessed at farmoffice.osu.edu

 

Farm Office Live to be held on October 20 at 10:00 a.m.

The OSU Extension Farm Office Team is pleased to be offering a “Farm Office Live” Zoom webinar on Friday, October 20 from 10:00 to 11:30 a.m.

This month’s webinar will feature the following topics:

Federal Farm Program Assistance Update

Legislative Update

A Look at Upcoming Farm Management Programs

Crop Input Outlook for 2024

Handing an Insurance Claim

Farm Bill Update

Featured Farm Office Team members include Bruce Clevenger, Jeff Lewis, David Marrison, Eric Richer, and Barry Ward.

To register for this program (or to access replays of previous programs):

go.osu.edu/farmofficelive

More information about this program can be accessed at farmoffice.osu.edu

Western Ohio Cropland Values and Cash Rents 2022-23

By: Barry Ward, Leader, Production Business Management, Director, OSU Income Tax Schools, College of Food, Agricultural and Environmental Sciences, OSU Extension, Agriculture & Natural Resources

Continued high crop prices, reasonable crop margins and relatively healthy farm balance sheets over the last 2 years have given strength to farmland markets. Higher input costs over the last two years together with rising interest rates have offset some of this support but farmland values continue to increase. Many of these same factors have given support to the farmland rental markets which have also seen increases last year and are expected to see additional increases in 2023.

Results from the Western Ohio Cropland Values and Cash Rents Survey show cropland values in western Ohio are expected to increase in 2023 by 6.1 to 10.7 percent depending on the region and land class. This follows increases ranging from 6.9 to 13.8 percent from ’21 to ’22.

Cash rents are expected to increase from 5.0 to 6.7 percent in 2023 depending on the region and land class. This is on top of rental increases of 1.3 to 3.8 percent from 2021 to 2022.

Ohio Cropland Values and Cash Rent

Ohio cropland varies significantly in its production capabilities and, consequently, cropland values and cash rents vary widely throughout the state. Generally, western Ohio cropland values and cash rents differ from much of southern and eastern Ohio cropland values and cash rents. The primary factors affecting these values and rents are land productivity and potential crop return, and the variability of those crop returns. Soils, fertility and drainage/irrigation capabilities are primary factors that most influence land productivity, crop return and variability of those crop returns.

Other factors impacting land values and cash rents may include field size and shape, field accessibility, market access, local market prices, field perimeter characteristics and potential for wildlife damage, buildings and grain storage, previous tillage system and crops, tolerant/resistant weed populations, USDA Program Yields, population density, and competition for the cropland in a region. Factors specific to cash rental rates may include services provided by the operator and specific conditions of the lease. This fact sheet summarizes data collected for western Ohio cropland values and cash rents.

Study Results 

The Western Ohio Cropland Values and Cash Rents study was conducted from January through April in 2023. This opinion-based study surveyed professionals with a knowledge of Ohio’s cropland values and rental rates. Professionals surveyed were rural appraisers, agricultural lenders, professional farm managers, ag business professionals, OSU Extension educators, farmers, landowners, and Farm Service Agency personnel.

The study results are based on 190 surveys. Respondents were asked to group their estimates based on three land quality classes: average, top, and bottom. Within each land-quality class, respondents were asked to estimate average corn and soybean yields for a five-year period based on typical farming practices. Survey respondents were also asked to estimate current bare cropland values and cash rents negotiated in the current or recent year for each land-quality class. Survey results are summarized below for western Ohio with regional summaries (subsets of western Ohio) for northwest Ohio and southwest Ohio.

The complete survey summary can be accessed and downloaded at Farm Office:

https://farmoffice.osu.edu/farm-management-tools/farm-management-publications/cash-rents