Revised October 2015

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G427, 2015 Cash Rental Rates in Missouri

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2015 Cash Rental Rates in Missouri

2011 rates Ronald L. Plain
MU Extension Economist
Department of Agricultural and Applied Economics
Joyce White
Project Coordinator
Department of Agricultural and Applied Economics

In the summer of 2015, 228 Missourians responded to a mailed survey and provided information on their cash rental arrangements for farm property. A summary of their rates for Missouri cropland, pasture, farm buildings and fee hunting is shown in the following tables. As expected, most rates had increased since our last survey.

This guide should not be used as the sole basis for determining your rent, but it may provide a reference as you consider the factors unique to your situation. The acres of land available for rent (supply) and the number of tenants wanting to rent for cash (demand), as well as production costs and market prices, can affect the amount of rent negotiated.

Table 1
Cash rent paid for Missouri crop and pasture land in 2015.

  Average rent per acre per year Range in rents Normal yield per acre Number of responses
Low Mid High
Cropland
Corn, dryland

$145.50

$50

$135

$300

150 bushels 196
Soybeans

148.74

22

135

300

44 bushels 186
Wheat

92.05

35

95

150

48 bushels 18
Wheat/beans, double crop

125.12

58

108

180

wheat 72 bushels
beans 34 bushels
13
Grain sorghum

102.44

40

70

135

3,577 pounds 6
Alfalfa hay

60.53

35

45

100

4 tons 5
Grass hay

32.33

10

30

70

2.66 tons 38
Pasture and grazing land
Good

 

$38.41

$10

$35

$100

less than 4 acres per 1,000-pound cow per year 144
Fair/poor

 

30.56

18

30

65

more than 4 acres per 1,000-pound cow per year 42
Timber pasture

17.96

3

15

50

  11

Notes
Average rents and yields are weighted based on the number of acres rented. The mid rent in the range has an equal number of responses below and above it.

Table 2
Cash rent paid for Missouri cropland in 2011 by yield and acreage.

Average yield per acre Average rent per acre per year Average size(acres) Number of responses
Corn
Under 100 bushels

$114

96 4
100 to 110 bushels

113

95 12
111 to 120 bushels

138

151 18
121 to 130 bushels

152

191 20
131 to 140 bushels

131

163 37
141 to 150 bushels

147

292 44
151 to 160 bushels

148

235 16
161 to 170 bushels

160

160 7
171 to 180 bushels

143

159 16
181 to 190 bushels

169

223 7
191 or more bushels

170

130 13
Soybeans
Under 35 bushels

$125

158 12
35 to 39 bushels

132

206 21
40 to 44 bushels

113

198 54
45 to 49 bushels

143

136 45
50 to 54 bushels

143

133 28
55 or more bushels

165

264 17
Wheat
25 to 49 bushels

$88

89 6
50 to 65 bushels

94

76 9
Grass Hay
Less than 2 tons

$23

42 4
2 to 2.9 tons

29

100 15
3 or more tons

42

78 10

Notes
Average rents are weighted by number of acres rented. Size is a simple average of the acreage of the parcels reported.

Table 3
Charge for pasturing cattle in Missouri by stocking rate in 2015.

  Average charge Range in charges Average stocking rate (animal units per acre) Average months on pasture Number of responses
Low High
Per cow-calf per month

$11.91

$1.15

$17.50

0.52 7.3 months 22
Per heifer per month

11.34

6.50

21.00

0.31 8.2 months 8
Per yearling per month

8.80

3.50

18.00

0.46 8.6 months 5

Table 4
Rental rates for Missouri farm buildings in 2015.

Type of structure Basis of charge Average charge

 

Range in charges Number of responses
Low High

Grain bin

per bushel per month

per bushel per year

flat rate per year (rate x maximum capacity of bin)

$0.039

0.145

0.098

$0.01

0.05

0.05

$0.12

0.20

0.20

6

19

11

Machine storage building per square foot per year

0.35

0.18

0.63

5

Table 5
Multiyear comparison of Missouri cash rental rates.

Type of land Average rates per acre per year
2008 2010 2011 2014 2015
Cropland
Corn, dryland

$97.95

$111.99

$121.75

$146.83

$145.50

Soybeans

96.91

105.67

113.88

143.83

148.74

Wheat

86.52

83.29

68.69

95.25

92.05

Wheat/beans, double crop

104.69

88.64

90.19

122.98

125.12

Grain sorghum

89.37

102.44

Alfalfa hay

61.82

63.69

63.69

62.30

60.53

Grass hay

30.31

30.95

32.91

30.81

32.33

Pasture
Good

29.95

29.88

31.43

$35.91

$38.41

Fair/poor

22.34

23.57

24.01

29.98

30.56

Timber pasture

7.03

15.59

16.63

17.98

17.96

Table 6
Hunting leases in Missouri in 2015.

Animals to be hunted Total acres in leases reported Averages

 

Acres per lease Rent per acre (annual) Number hunters per lease Acres per hunter Number of responses
Any wildlife 1,964 327

$10.20

4

 

59 7
Range in rates   160 to 700

$0.13 to $30

1 to 6    
Deer only 667 222

$13.64

3 74 3
Range in rates   67 to 500

$1.50 to $40

2 to 5    
Deer and turkey 3,855 385

$8.91

5.1 68 10

Range in rates

  100 to 855

$1.11 to $23.39

1 to 8    
Deer and turkey 492 123

$32.93

9 11 4

Range in rates

  8 to 244

$7.50 to $300

1 to 12    

This year’s survey included an attempt to determine charges for lease hunting (Table 6). The number of responses was small, so the averages may not be an accurate reflection of Missouri rates. Several landlords indicated they do not charge for hunting and therefore were not included in the averages.

Cash renting defined

In a cash rental agreement, a tenant pays a landowner a fixed amount of money per acre (or other unit of measure) for the use of land or buildings. No nonmonetary payment or share of production is involved. The rates are commonly expressed as annual rates per acre for cropland and pasture. However, pasture may also be cash rented by charging a fixed rate per animal placed on the pasture for a specific period of time.

Storage facilities such as grain bins and equipment storage structures, are also rented for cash. Rates are usually based on size or capacity for a specific use and time period, such as grain bins by capacity or a storage rate per bushel per month or per year. Use or availability of auxiliary equipment and utilities may also affect the rate.

A written lease that describes the terms of the agreement is recommended. A cash lease usually includes restrictions on use, such as which crops can or cannot be grown on specific fields and the degree of fertility that must be maintained. Pasture or livestock facilities may specify the number of animal units allowed. Storage facilities may specify type of crop to be stored or payment for utility costs. All cash leases should specify the amount of rent due, the time and method of payment and the duration of the lease. Apart from these terms, the tenant has complete freedom in planning production or use of facilities. 

It is common practice for the tenant to pay all costs involved in raising the specified crops during the period of the lease. Landowners normally pay for improvements expected to endure beyond the period of the lease, as well as expenses related to property ownership.

Pros (+) and cons (-) of cash renting

The tenant

+ Is relatively free to make management decisions and develop a business unit.

+ Receives all profit resulting from higher yields or higher commodity prices, which adds an incentive for higher production.

+ May enroll in government programs and receive entire payment.

- Has increased risk, because rent is fixed regardless of production.

- Can have large capital requirements for production expenses.

- Can have rent raised for doing a good job. As revenue increases, the landowner might attempt to negotiate a higher rent.

The landowner

+ Is assured of a specific level of income.

+ Is not required to tie up cash in the production process.

+ Has no worries about storing or marketing crops.

-  In good years, does not receive as much money as he or she would in a crop-share arrangement.

- Worries that the tenant will not maintain the property.

- Has little chance to do income tax management.

High rents increase the tenant’s risks but benefit the landowner. A variable or flexible cash rent based on yields or prices, or both, can help distribute risk. It is suggested that you have a proposed flexible agreement reviewed by the local U.S. Department of Agriculture (USDA) Farm Services Agency office for classification before finalizing it.

Additional resources

For information on other types of rental arrangements and lease forms, contact the agricultural business specialist at your local MU Extension center. Additional information and forms are also available from Ag Lease 101, a website of the North Central Farm Management Extension Committee.


G427 2015 Cash Rental Rates in Missouri | University of Missouri Extension