Cash Rent Increases When is the Right Time to Give Up a Lease?

Authors

Tina Barrett, University of Nebraska-LincolnFollow

Date of this Version

7-29-2015

Document Type

Article

Citation

Cornhusker Economics, July 29, 2015, agecon.unl.edu/cornhuskereconomics

Comments

Copyright 2015 University of Nebraska.

Abstract

There has been considerable talk for many years about the increases in cash rent. This chart shows the data collected by Nebraska Farm Business, Inc. for the average cash rent paid in the prior 10 years. The average cost has doubled from $127.71 in 2005 to $258.11 in 2014 (peak of $274.74 in 2013) . The cost now accounts for 31% of the total cost of growing irrigated corn. It's no wonder that in times of narrowing margins, producers are considering ways to reduce this major expense.