Inside this issue
September 14, 2020
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- Cuming County Almost Achieves Rent Hat Trick...
- Trends in Cash Rents...
- Crop Progress Reports...
- Hmmm...
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Cuming County Almost Achieves Rent Hat Trick... |
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For the second consecutive year Cuming County almost scored a “hat trick” for the highest average cash rental rates on irrigated, dryland, and pasture ground. Cuming County led the state in average cash rents on irrigated and dryland ground last year and did so again this year with rents of $291/acre and $243/acre, respectively. Both rates were off slightly compared to last year. However, Cuming County’s shot at the hat trick veered wide of the goal when its average rents on pasture failed to rank among the top three counties. Like last year, Wayne County had the state’s highest average cash rent on pasture at $86/acre, $5 higher than last year. The data comes from the USDA National Agricultural Statistics Service.
Rounding out the top three counties for pasture rents this year were Colfax ($76/acre) and Stanton Counties ($75/acre). Dixon and Wayne Counties tied for second for rents on irrigated ground at $285/acre, and Cedar County was close behind at $282/acre. Dakota and Thurston Counties followed Cuming County for dryland with rents of $239/acre and $238/acre, respectively.
The statewide average rent for irrigated cropland averaged $240/acre this year, $3 higher than last year. Dryland rent averaged $149/acre, $5 higher, and rent for pasture ground averaged $24/acre, off $0.50/acre compared to last year. The slight increase in average rental rates for crop ground this year might be due to improved income conditions. Estimates suggest net farm income in Nebraska last year exceeded 2018 levels, mostly due to the trade assistance provided to producers. Of course, the COVID-19 pandemic hit after most rental rates were set for the year. The decline in rent for pasture probably reflects the culling of cow herds. Cow slaughter increased last year leading to a small decline in cattle numbers heading into this year.
The maps below show the average cash rental rates for irrigated cropland, dryland cropland, and pasture ground by county. Counties colored grey are ones where data was unavailable. For more information on how rents for cropland in Nebraska compares to other states go to: https://www.fb.org/market-intel/cash-rents-remain-stable-in-2020.
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FIGURE 1. AVERAGE CASH RENT FOR PASTURE, 2020 ($/ACRE) |
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FIGURE 2. AVERAGE CASH RENT FOR DRYLAND, 2020 ($/ACRE) |
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FIGURE 3. AVERAGE CASH RENT FOR IRRIGATED LAND, 2020 ($/ACRE) |
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The USDA rental data covers multiple years so changes in cash rents over time can be tracked. Trends can provide insights into the underlying agricultural economy. The maps below show the changes in rents for pasture, dryland, and irrigated land between 2017 and 2020. Please note comparisons could not be made for every county due to the unavailability of data for both years.
Polk and Colfax Counties saw the largest increases in cash rental rates on pasture between 2017 and 2020 of $10/acre, 26 percent and 15 percent respectively. Other counties with increases greater than 20 percent included Keya Paha, Thomas, York, and Banner Counties. Forty-five counties had increases in pasture rents. In contrast, twenty-five counties had decreases. The largest decline occurred in Merrick County, down 17 percent, or $9/acre. Five counties had no change in rents. The average change in rents for pasture across all counties for which data was available was +4.0 percent.
Buffalo, Sherman, and Greeley Counties had the largest increases in rental rates on dryland, 17 percent, or $17/per acre. Valley and Chase Counties also saw increases of at least 10 percent. Just over one-third of counties, or 34 counties, experienced increases between 2017 and 2020. Rents were lower in 21 counties, with Clay County experiencing the largest decline, 11 percent. Six counties saw no change in rental rates. Changes in dryland rental rates averaged +1.0 percent across all counties.
The largest percentage increase in rents on irrigated ground occurred in Kimball County, up 27 percent, while the largest increase in absolute dollars occurred in Sarpy County, $41/acre or 20 percent. Lancaster, Arthur, Scotts Bluff, and Red Willow Counties also had increases of at least 10 percent. In all, rents for irrigated ground increased in 38 counties and 22 counties saw average rents decline. The greatest decrease occurred in Box Butte County, down 12 percent. Three counties saw no change. The average change across all counties was +1.4 percent.
Like land values, rental rates statewide remain stable. The stability statewide obscures variability at the county level between 2017 and 2020. This could be reflective of local land rental markets or could be simply the nature of the survey and data from year-to-year. The number of counties which had increases in rental rates across all land categories exceeds the number which experienced decreases, at least for the counties where data is available. This could, in part, be reflective of a stabilization and slight improvement of farm income since 2017, much of which is due to increased trade assistance to producers. For pasture ground, the increases in rates might be due to larger cattle numbers and greater competition for pasture. The Nebraska’s beef cow inventory in the last two years exceeds that of a few years ago.
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FIGURE 4. CHANGES IN CASH RENTS FOR PASTURE, 2017-2020 |
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Source: NEFB calculations using USDA NASS data |
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FIGURE 5. CHANGES IN CASH RENTS FOR DRYLAND, 2017-2020 |
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Source: NEFB calculations using USDA NASS data |
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FIGURE 6. CHANGES IN CASH RENTS FOR IRRIGATED LAND, 2017-2020 |
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Source: NEFB calculations using USDA NASS data |
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Tidbits is providing charts with updated crop progress reports each week. To view this week's progress reports, click HERE.
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“According to our reckoning, an American wearing a mask for a day is helping prevent a fall in GDP of $56.14. Not bad for something that you can buy for about 50 cents apiece.” The Economist, Cloth of gold, August 22, 2020.
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View Economic Tidbits online
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