Home 5 Ag Stories Next year’s cash rents depend on this year’s production

Next year’s cash rents depend on this year’s production

Photo Courtesy of Randy Dowdy

Production costs have risen across the board in the agriculture sector in recent years. Cash rents have also climbed in the last several years. Randy Dickhut is a farmland expert with Agricultural Economic Insights and he says that cash rents usually lag behind other costs of production.

He says strong commodity prices are working against farmers by pressuring cash rents higher in some areas of rural America.

Cash rents in the next couple of years are going to depend on yields. If yields are strong, rents will continue to go higher. If yields aren’t as good, that will ease the pressure according to Dickhut.

For more information, go to www.aei.ag

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