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Western Ohio
Cropland Values and Cash Rents 2012-13
By Sam Custer
OSU Extension, Darke County
Calls to the OSU Extension, Darke County office vary to a great deal
with information needed by you the citizens of Darke County. But
without a doubt, the majority of the calls this past winter and spring
have been about cash rent and land values in the county. Values
have been shared based on what we have heard in the office. Below
you will find information compiled by Ohio State Extension.
Ohio cropland varies significantly in its production capabilities and
cropland values and cash rents vary widely throughout the state.
Generally speaking, western Ohio cropland values and cash rents differ
substantially from eastern Ohio cropland values and cash rents. This is
due to a number of factors including land productivity and potential
crop return, the variability of those crop returns, field size, field
shape, drainage, population, ease of access, market access, local
market price, potential for wildlife damage, and competition for rented
cropland in a region. This article highlights the summary of data
collected for western Ohio cropland values and cash rents.
Ohio cropland values and cash rental rates are projected to increase in
2013. According to the Ohio Cropland Values and Cash Rents Survey bare
cropland values in western Ohio are expected to increase from 6.8% to
15.4% in 2013 depending on the region and land class. Cash rents are
expected to increase from 7.8% to 10.7% depending on the region and
land class.
The “Western Ohio Cropland Values and Cash Rents” study was conducted
surveying professionals knowledgeable about Ohio’s cropland markets.
Surveyed groups include farm managers, rural appraisers, agricultural
lenders, OSU Extension educators, farmers, landowners, and Farm Service
Agency personnel.
Average Cropland
Survey results for “average” producing cropland show an average yield
to be 160.7 bushels of corn per acre. Results show that the value of
“average” cropland in western Ohio was $6,516 per acre in 2012.
According to survey data this “average” producing cropland is expected
to be valued at $7,069 per acre in 2013. This is a projected increase
of 8.5%.
“Average” cropland rented for an average of $197 per acre in 2012
according to survey results. “Average” cropland is expected to rent for
$215 per acre in 2013. This equates to a cash rent of $1.34 per bushel
of corn produced. Rents in the “average” cropland category are expected
to equal 3.0% of land value in 2013.
Top Cropland
Survey results indicate that “top” performing cropland in western Ohio
averages 192.3 bushels of corn per acre. Results also show that average
value of “top” cropland in 2012 was $7,865 per acre. According to this
survey “top” cropland in western Ohio is expected to be valued at
$8,515 in 2013. This is a projected increase of 8.3%.
“Top” cropland in western Ohio rented for an average of $256 per acre
in 2012 according to survey results. “Top” cropland is expected to rent
for $283 in 2013. This equates to a cash rent of $1.47 per bushel of
corn produced. Rents in the “top” cropland category are expected to
equal 3.3% of land value in 2013.
Poor Cropland
The survey summary shows the average yield for “poor” performing
cropland equals 127.2 bushels of corn per acre. Results also show that
the average value of “poor” cropland was $5,053 per acre in 2012.
According to survey data this “poor” producing cropland is expected to
be valued at $5,645 in 2013. This is an increase of 11.7%.
“Poor” cropland rented for an average of $144 per acre in 2012
according to survey results. Cash Rent for “Poor” cropland is expected
to average $156 per acre in 2013. This equates to a cash rent of $1.23
per bushel of corn produced in 2013. Rents in the “poor” cropland
category are expected to equal 2.8% of land value in 2013.
The entire survey summary is available online at: http://go.osu.edu/cashrents2013
Source: Barry Ward, OSU Extension, Leader, Production Business
Management, Department of Agricultural, Environmental, and Development
Economics
For more detailed information, visit the Darke County OSU Extension web
site at www.darke.osu.edu,
the OSU Extension Darke County Facebook page or contact Sam Custer, at
937.548.5215.
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