The National Ag Statistics Service said cash rents dropped six percent around the U.S. compared to last year. Cash rental rates had not dropped since 2007. However, the not-so-good-news was rental rates were very uneven. Rents did drop between six and seven percent in some states, but in others the rates were five percent higher. Thirteen states saw higher cash rates this year, including Idaho, Utah, Arizona, New Mexico, Wisconsin, Michigan, Ohio, West Virginia, Virginia, Delaware, New Jersey, South Carolina and Mississippi. “It’s important for producers to remember the impacts of the ag economy slowdown and resulting lower farm incomes will vary across the country,” said Purdue Ag Economist David Widmar. He added that national trends are important, but it is still a key to keep an eye on local conditions, too.
Changes in pasture rental rates vary significantly as well. Nebraska and South Dakota saw the sharpest declines in pasture rental rates at sixteen and eleven percent respectively. Neighboring Great Plains states saw five to six percent declines, but the Eastern Corn Belt rates were sharply higher.
Source: NAFB News Service