The United States Department of Agriculture (USDA) has unveiled its "USDA Farmland Cash Rental Rates" document, offering a comprehensive listing of cash rental rates by county. This dataset spans from 2012 to the present year, 2023. The information is derived from the USDA's National Agricultural Statistics Service (NASS) and is based on the results of their county-level survey.
The report encompasses both annual and long-term lease agreements, with the latter typically featuring fixed cash rental rates. Consequently, fluctuations in year-to-year cash rental rates are influenced by the inclusion of new leases in the data and the consistency of responses from previous participants. Given these factors, the rental rate values in the report are not intended as rigid benchmarks for rent negotiation but rather as a starting point.
It's important to note that land rent prices exhibit significant variation from one county to another in Michigan. Factors influencing these prices include soil productivity, particularly in areas with tile drainage or irrigation where specialty crops like sugarbeets and vegetables are cultivated. Other considerations impacting land rental rates encompass field size, accessibility, soil type, fertility, historical cropping practices, and proximity to a farmer's operation.
It's crucial to recognize that the USDA's average values may not precisely align with individual farmland characteristics and county-specific dynamics. However, the data can be valuable for comparing rental rates in neighboring counties and understanding the agricultural diversity within those regions.
The 2023 data reveals diverse trends across Michigan counties:
For non-irrigated counties:
• 36 counties reported increases in rental rate averages.
• 22 counties observed decreases in rental rate averages.
• 4 counties recorded no change in their average rental rates.
For irrigated counties:
• 7 counties reported increases in rental rate averages.
• 4 counties noted decreases in rental rate averages.
The 2022 report lacked data on pasture acres due to limited survey responses, and in 2023, only three counties were listed. Two out of these three counties reported higher cash rental rates, with the third county technically showing an increase, but a comparable year for reference is only available for 2017.
The data from this report can be accessed on the USDA NASS website.
For those engaged in land rent negotiations, Michigan State University Extension offers resources to determine reasonable rental rates and prepare for lease discussions. Additional information is available on MSU Extension's Farmland Leasing website.
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Categories: Michigan, General