Negotiating farmland rental rates can be challenging.

Farmland Rent Considerations


February 10, 2020 - Author: , Farm Management Educator

Almost ten years have passed since the record high prices in commodities helped drive farmland rental rates to their own record highs. In recent years, those same commodities have receded to pre-2009 prices with net farm income (NFI) falling to or below where they were during that same period in time. Despite the reduced income, the rents being paid have remained steady, with an upward trend still being seen in irrigated acres.

Farm economists are expecting only moderate price increases in the next five to six years, which indicates that there will continue to be lower amounts of income to support the rents being paid.  This makes understanding the impacts that rental prices have on cost of production even more vital to a farm’s overall success.

The Farmland Rent Considerations factsheets provides information, resources, and tools to help producers and landowners determine a fair and reasonable rental rate for farmland.  




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