Farmland Values and Cash Rent

 

Every two years, Ohio State conducts a survey of farmers on cropland values and cash rent. Barry Ward, OSU Economist conducts this survey of professionals including ag business, farm managers, farmers, rural appraisers, and ag lenders. Western Ohio cropland values and rental rates are significantly different than the eastern and southern values. The type of soil, fertility, productivity, and generally higher returns result in higher prices in Western Ohio. Also, larger squarer fields, flatter soils, and access to crop markets add value to the cropland and to rental rates. In 2022-2023, Barry Ward surveyed 190 participants and the results were just released in August 2023. The numbers are reported for top, average, and bottom farmland with only the average farmland and cash rent values reported.

For all of Western Ohio, average producing cropland produced 185.3 bushels corn per acre and had a projected value of $9,672/acre in 2022 with a projected value of $10,329/acre in 2023 for a 6.8% increase in land values expected. For cash rents, the average was around $221/acre in 2022 rising to $233/acre in 2023 with a 5.7% increase in value. Cash rent in 2023 was $1.26 per bushel of expected corn produced per acre.

For Western Ohio, top producing cropland produced 221.1 bushels corn with a projected value of $11,913/acre in 2022 rising to $12,992/acre in 2023 for a 9.1% increase in land values. For cash rents, the average was around $274/acre in 2022 rising to $288/acre in 2023 with 5.1% increase in value. Cash rent in 2023 was $1.30 per bushel of expected corn produced per acre. For Western Ohio, bottom producing cropland produced 153.1 bushels corn with a projected value of $7,553/acre in 2022 rising to $8,165/acre in 2023 with 8.1% increase in land value. For cash rents, $166/acre in 2022 rising to $177/acre in 2023 with 6.1% increase in values. Cash rent in 2023 was $1.16 per bushel of expected corn produced per acre.

Barry Ward also divided the numbers out for Northwest Ohio and Southwest Ohio. For Northwest Ohio, average producing cropland produced 180.1 bushels corn and 55.9 bushels soybeans per acre. The projected value was $9,881/acre in 2022 with a projected value of $9,529/acre in 2023 with 8.5% increase. For cash rents, $205/acre in 2022 was the average rising to $218/acre in 2023 with 6.4% increase. Cash rent in 2023 was $1.21 per bushel of expected corn produced per acre.

For Northwest Ohio, top producing cropland produced 216.4 bushels corn and 67.9 bushels soybeans valued of $10,943/acre (2022) rising to $12,112/acre (2023) for 10.7% increase in land values. For cash rents, average of $256/acre (2022) rising to $270/acre (2023) with a 5.4% increase. Cash rent in 2023 was $1.25 per bushel of expected corn produced per acre. For Northwest Ohio, bottom producing cropland produced 147.9 bushels corn and 42.5 bushels of soybeans with a projected value of $6,687/acre (2022) rising to $7,286/acre (2023) with a 9.0% increase in land values. For cash rents, $153/acre (2022) rising to $164/acre (2023) with a 6.7% increase in value. Cash rent in 2023 was $1.11 per bushel of expected corn produced per acre.

For Southwest Ohio, average producing cropland produced 193.6 bushels corn and 59.5 bushels soybeans per acre. The projected value was $11,063/acre (2022) with a projected value of $11,733/acre (2023) or 6.1% increase. For cash rents, $243/acre (2022) average rising to $255/acre (2023) with 5.0% increase. Cash rent in 2023 was $1.32 per bushel of expected corn produced per acre.

For Southwest Ohio, top producing cropland produced 229.3 bushels corn and 69.7 bushels soybeans valued of $13,771/acre (2022) rising to $14,733/acre (2023) for a 7% increase in land values. For cash rents, average of $300/acre (2022) rising to $316/acre (2023) with 5.3% increase. Cash rent in 2023 was $1.38 per bushel of expected corn produced per acre. For Southwest Ohio, bottom producing cropland produced 162.1 bushels corn and 48.4 bushels of soybeans on average with a projected value of $9,211/acre (2022) rising to $9,945/acre (2023) and a 8.0% increase in land values. For cash rents, $189/acre (2022) rising to $201/acre (2023) with a 6.3% increase in value. Cash rent in 2023 was $1.24 per bushel of expected corn produced per acre.

For the full report and more information on ranges and standard deviations, look up Barry Ward at the Ohio State Farm Office and look for Farm Land Values and Cash Rents for 2022-23 with a new survey to be conducted this winter. Every parcel of land is different but this information can help landowners and tenants determine fair prices.