Opportunities to lock in profits for the 2014 corn and soybean crops have disappeared as corn and soybean futures prices have fallen considerably since the predictions for record crops have been made by the USDA. Even as grain prices drop, continued increases are occurring in farmland values although the volume of sales is down. Many people are asking “What will cash rental rates look like for the 2014 crop year?” Setting cash rental rates in stable times is hard enough. Setting cash rental rates when there are volatile prices for corn, soybeans, and input cost, is even more difficult.
Iowa State University (ISU) Extension is offering a Farmland Leasing workshop on Wednesday, August 7th from 9am to Noon at the Briggs Center located at 317 Water Street in Wapello. Other meetings are also planned and can be found listed on the Iowa State University Extension Calendar.
Jim Jensen and Ryan Drollette, ISU Extension Farm Management Specialists, will be the presenters. According to Jensen & Drollette, “The 2013 Extension Cash Rental Survey is out and will be discussed as well as the profit potential for tenants.” Are cash rents keeping up with land values that have increased over100% in the past six years?
Jensen & Drollette will be discussing land values, leasing practices, and lead an interactive discussion on methods to calculate cash rent. Jensen stated, “The most frequent stumbling block for setting a cash rental rate is determining the land quality of the farm. Rents on various quality soils and ways to determine land quality will be discussed. Land values and cash rental rates for various grades of land have not increased at the same percentage rate.
The Farmland Leasing workshop cost is $25 per person and includes the 2013 Farm Leasing Arrangement booklet and copies of the presentation. To pre-register call the Louisa County Extension Office at 319.523.2371. Registration can be paid at the door approximately 30 minutes before the workshop begins. For those that pre-register 1 business day prior to or at the meeting, a $5 late registration fee will be added.