Farmland Rents Expected To Hold Steady For 2010

Despite the volatile grain markets and a tough harvest, there’s still strong demand from farm operators to rent more land for the coming year, Agri Marketing reports. Part of the reason, Jim Farrell, CEO, Farmers National Co., Omaha, NE said, is that the market has remained strong and many farmers had good income during 2009, especially if they bought their inputs at the right time and if they were aggressive grain marketers.

Continued strong land values have also helped to hold rental terms steady to stronger in much of the Midwest. Top pivot ground in northeast and east-central Nebraska is renting for $220 to $240 per acre. In Kansas and Missouri, rents are steady and up 5% to 10%. Iowa and Minnesota also saw steady rents ranging from $225 to $275 per acre. Northern Minnesota, South Dakota and eastern North Dakota, the averages were between $100 and $150 an acre.

Illinois mostly had steady rents, with some high-end rents potentially declining 5%. Average rents in Illinois have been from $275 to $300 per acre. In Indiana, the average rents are from $250 to $275 per acre.