By Blake Jackson
The latest cash rental rates survey from University of Missouri Extension reveals that rental rates for various types of land in Missouri have continued to rise in 2024, albeit at a slower pace than previous years.
“Results from our survey indicated that, across the board, rental rates continue to increase in Missouri, but at a slower rate,” said Ben Brown, MU Extension specialist and survey organizer. “If we compare rental rates to land values, we often see them follow on a short lag. Land values strengthened in recent years and, in turn, so have rental rates. However, due to lower commodity prices and the possibility of negative cash flows in 2024 and 2025, we could see some downward pressure on rental rates.”
The survey found that cash rental rates for dryland corn and soybeans increased by 2% from 2023, while wheat saw an 11% increase.
Hay rental rates remained flat due to widespread drought conditions last year. Pastureland rental rates also saw a significant increase of over 10%, likely due to forage scarcity.
Hunting leases also experienced an average increase of 6% from 2023. MU Extension offers a free guide, "Landowners' Guide to Lease Hunting in Missouri," to assist landowners interested in leasing their land for hunting.
Brown highlighted the advantages and disadvantages of cash rental arrangements, including flexibility and control of lease provisions. The survey found that the average tenure for cash rental agreements is 11 years.
More than three-quarters of respondents renegotiate their leases every one to five years, allowing for regular adjustments during the lease's lifespan.
As landowners and tenants prepare to discuss leases for the year ahead, access to recent data and regional breakdowns of rental rate trends can aid in informed decision-making, said Katie Neuner, MU Extension field specialist. “By having localized insights and trends available, both parties in the leasing arrangement can come to the table equipped with knowledge,” Neuner said.
Photo Credit: gettyimages-sizsus
Categories: Missouri, General, Rural Lifestyle