Midwest Cash Rents Expected to Drop Next Year

Iowa State University Extension says cash rental rates in the Midwest are five to ten percent lower than they were last year, and some experts say the drop could be bigger next year. ISU Extension farm managements specialist Kevin Leibold says low commodity prices will be the main topic in 2017 cash rent discussions, but they won’t be the only factor. Leibold said Agriculture Risk Coverage payments are expected to decrease next year and that will put additional financial pressure on rental discussions. He said, “Landlords are also asking about the possibility of other input costs coming down. They’re concerned about the talk of lower rents, but they want the inputs industry to participate in some of the lower costs.” While some ag inputs like fertilizer have come down in price, seed costs have not.

Source;  NAFB News