Whether Rain or Shine, Land Prices on the Rise
While some parts of the Midwest saw excessively hot and dry weather in summer 2023, others were impacted by severe storms, resulting in yields that are all over the board. Regardless of the weather, one fact remains: Land prices are on the rise, with a combination of inflation, limited land supply, and high interest rates resulting in higher rent rates for tenants. Farmers National Company expects cash rent leases to jump at least 3 to 5 percent in 2024.
Let’s look at two states as an example: In western Kansas, rates will likely hold steady for 2024, due to the abundance of rainfall that hit during the growing season, resulting in some of the best yields we’ve seen in years. In other parts of Kansas as well as western Missouri, yields are all over the board, from 60 bushels in Marion County to 150 in Labette County, with plenty of 80-to-110-bushel corn in the areas between.
Early yield results in south-central Nebraska’s dry and hot land are down 25 to 30 percent on corn. Still, competition for land is driving a projected 5 percent increase in cash rent. Other areas in Nebraska likely will see at least a 5 percent increase, as well.
The experts at Farmers National Company can help landowners navigate the projected increase in lease rates. When tenants are looking at a plot of land to lease, FNC will complete a leasing report that includes an investment analysis showing the five types, from custom farming to share crops to cash rent. Then, we will visit with landowners to determine their goals and agree on rental terms for the coming year.
Our goal at FNC is to make the process as easy as possible for landowners. Let us do the legwork -- from leasing, sales, collecting income, paying bills, placing crop insurance, liability insurance, and more. Our experts help negotiate a larger discount on inputs like seed and fertilizer, and we can improve landowner income by more than our fee.
Interested landowners can reach out to FNC for a no-obligation conversation today.