The USDA National Agricultural Statistics Service (NASS) recently released data showing that cash rents for cropland have increased nationwide in 2023.
Between 2022 and 2023, the national average for cropland cash rents grew from $148 to $155 per acre – a 4.7% increase. The lowest reported average was in Montana at $35 per acre, compared to the highest in Arizona at $347.
Within the corn belt, values increased 5.8% from $223 to $235.
Farmdoc Daily from the University of Illinois did a state-specific deep dive in the data to show how values have changed over time, as well as how different values can be across states.
There may, however, be a shift soon. According to The Illinois Society of Professional Farm Managers and Rural Appraisers, a slight decrease in those numbers is expected for 2024.
The society shares that cropland cash rent values tend to follow trends in farm returns, but with a 1- 2-year lag. They attribute this year’s high rent values to the last two years of high farm income levels.
The Farmdoc graph below shows the farm return trends for central Illinois.
With the USDA reporting a net farm income decrease in 2023, the society predicts cash rent values to follow next year.