Western Ohio Cropland Values and Cash Rents 2020-21

Thursday, August 26th, 2021
Barry Ward, Leader, Production Business Management

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.

The Western Ohio Cropland Values and Cash Rents study was conducted from January through April in 2021. The 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 94 surveys. Respondents were asked to group their estimates based on three land quality classes: average, top, and poor. 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.

According to the Western Ohio Cropland Values and Cash Rents Survey, cropland values in western Ohio are expected to increase in 2021 by 3.8 to 5.3 percent depending on the region and land class. Cash rents are expected to increase from 3.6 to 3.9 percent depending on the region and land class.

For the complete survey research summary go to the OSU Extension Farm Office website at:

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

Western Ohio Cropland Values and Cash Rents 2020-21

Ohio Cropland Values and Cash Rents 2021 Survey

From the desk of Barry Ward

We are once again surveying ag professionals/farmers/landowners across Ohio to generate information for those interested in farmland. You can assist us by completing the online survey (new option this year) or by completing the attached survey and returning by email to: (ward.8@osu.edu). (Paper Survey Ohio Cropland Values and Cash Rents 2021 Survey)

We are asking you to please complete the online or attached survey by March 31st, 2021. The Ohio Cropland Values and Cash Rents 2020-21 Survey is being conducted by The Ohio State University College of Food, Agricultural, and Environmental Sciences. (I hope that you’ll excuse any duplicate requests that you may receive.)

The online survey is available at:

OhioCroplandValuesCashRents202021 or https://osu.az1.qualtrics.com/jfe/form/SV_eXlA7B6jbgSoRGC

  • For those that don’t have information to report on Flexible Cash Leases or Crop Share Leases please skip Parts 2 and 3 before you proceed to submit your survey.
  • All survey data will be anonymous and distributed only in a summary format. (See last year’s summary at the web address below.)

Summary conclusions from the latest survey of agricultural professionals, the “Western Ohio Cropland Values and Cash Rental Rates 2019-20”, are available online at:

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

I would like to thank the many of you that have taken the time to share your thoughts and information with us in the past and thank you all in advance for your valuable time in providing data for this research! We expect it to benefit you and your clientele. Summary data of this research will be available via our Farm Office website: https://farmoffice.osu.edu/ and the free online OSU Extension newsletter, “Ohio Ag Manager”. Subscribe to receive this electronic newsletter at http://ohioagmanager.osu.edu/

Thank you!

Western Ohio Cropland Values and Cash Rents 2019-20

by: Barry Ward, Leader, Production Business Management, Director, OSU Income Tax Schools, College of Food, Agricultural and Environmental Sciences, OSU Extension

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

Other factors impacting land values and cash rents may include buildings and grain storage, field size and shape, field accessibility, market access, local market prices, field perimeter characteristics and potential for wildlife damage, previous tillage system and crops, tolerant/resistant weed populations, population density, USDA Program Yields, and competition for the cropland in a region. Ultimately, the supply and demand for cropland will determine the value or rental rate for each parcel. Continue reading