Cash rent - Ask Extension
I have property in Linn County that I lease out. I’ve asked the same rent per acre for many years and would like to know if I can ask for more.
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Knowledgebase
Cash rent #890181
Asked November 22, 2024, 1:59 PM EST
I have property in Linn County that I lease out. I’ve asked the same rent per acre for many years and would like to know if I can ask for more.
48 acres is class 1A soil and it is irrigatable. It has been used in the past to grow rye grass or clover.
About 80 acres is pasture. We lease it out to a cattleman.
What is a reasonable rate to ask per acre for the 48 acres of irrigated crop land? Same question for the 80 acres of pasture.
Linn County Oregon
Expert Response
Greetings,
Thank you for reaching out, lease rates are one of our most commonly asked questions. Unfortunately the answer is not as simple as the question.
The USDA National Agricultural Statistics Service (NASS) compiles county-level statistics for per-acre cash rental rates for irrigated farmland, non-irrigated farmland, and pasture every year in August.
Linn County's avergaes are listed as:
$127/Acre per year for irrigated crop land
$91/Acre per year for non irrigated crop land
$25/per acre for pasture
However, it is not recommended that you base rental rates solely on such benchmark data. The rates are averages that don’t consider the differences in land rental rates across a county. Actual rates vary from these statistics, as there is no standard for determining a rental rate. One of the best methods for getting data in your local area is to talk with your neighbors.
For more information on pasture rental rates go to:
Reliable data collection related to current lease prices is a challenge. Some people wish to keep their arrangements private since neighboring properties can have wildly different lease rates. The reason for the variance is that lease agreements are often personal.
Leases are not just about the land, they are a part of a relationship. The value of the land is only one part of the asking price, often for a land owner the management practices and personalities of the farmers using the land are just as important. The motivations for leasing land can range from a need for income to a desire to see the land stewarded.
Some items for consideration in a rate negotiation:
The ‘word of mouth’ data that we have collected shows a range of $50/Acre - $400+/Acre (some even lease for free). Longer term leases for berries and nursery crops and land for certified organic production are on the higher end of the spectrum while non irrigated land with poor soil quality is on the lower. Pasture rental rates can be figured by animal size or weight, condition of the pasture (forage quality and quantity), and labor offered by both parties.
Thank you for reaching out, lease rates are one of our most commonly asked questions. Unfortunately the answer is not as simple as the question.
The USDA National Agricultural Statistics Service (NASS) compiles county-level statistics for per-acre cash rental rates for irrigated farmland, non-irrigated farmland, and pasture every year in August.
Linn County's avergaes are listed as:
$127/Acre per year for irrigated crop land
$91/Acre per year for non irrigated crop land
$25/per acre for pasture
However, it is not recommended that you base rental rates solely on such benchmark data. The rates are averages that don’t consider the differences in land rental rates across a county. Actual rates vary from these statistics, as there is no standard for determining a rental rate. One of the best methods for getting data in your local area is to talk with your neighbors.
For more information on pasture rental rates go to:
Reliable data collection related to current lease prices is a challenge. Some people wish to keep their arrangements private since neighboring properties can have wildly different lease rates. The reason for the variance is that lease agreements are often personal.
Leases are not just about the land, they are a part of a relationship. The value of the land is only one part of the asking price, often for a land owner the management practices and personalities of the farmers using the land are just as important. The motivations for leasing land can range from a need for income to a desire to see the land stewarded.
Some items for consideration in a rate negotiation:
- Length of lease
- Size of parcel
- Who will carry insurance on the property and/or crops?
- What is the soil type/quality? drainage?
- Are there water rights?
- Is the land certified organic?
- What infrastructure is included? Fencing?
- Current weed pressure
- Proximity to market or distribution channels for the farmer or proximity to other land farmed
The ‘word of mouth’ data that we have collected shows a range of $50/Acre - $400+/Acre (some even lease for free). Longer term leases for berries and nursery crops and land for certified organic production are on the higher end of the spectrum while non irrigated land with poor soil quality is on the lower. Pasture rental rates can be figured by animal size or weight, condition of the pasture (forage quality and quantity), and labor offered by both parties.
