Cash rents to challenge record highs
A farm business management instructor expects cash rents to rival record highs set a decade ago.
Wayne Schoper with South Central College in Mankato, Minnesota says when they analyze farmer data from 2022, he expects rental rates to average $250 to $260 an acre.
“That’s where we peaked in 2012 and 2013.”
He tells Brownfield there are anecdotal stories of landlords charging $400 or more an acre, which Schoper calls “outrageous.”
“I know there’s opportunities (like) if you’ve got a good parcel of ground and you put it on a seal-bid auction sometime, sure sky’s the limit. There’s people that are going to step forward and pay that. And then again, is that going to be good down the road?”
Schoper says a major consideration for tenants facing inflated cash rents in 2023 will be higher interest rates on operating loans.
Schoper made these comments on Brownfield affiliate KNUJ’s Farm Forum last week.