Agricultural Land Values and Lease Rates in Western Ohio During 2016-2017
In the winter and spring of 2017, the Western Ohio Cropland Values and Cash Rents study was conducted, analysing the values and rental rates of cropland and pastureland across the state. The survey results, based on 120 returned surveys, have been summarised for western Ohio, northwest Ohio, and southwest Ohio.
The poor cropland in western Ohio is expected to be valued at $5,698 per acre in 2017, a decrease of 8.0 percent. The average rent for this type of land is expected to be $192 per acre, a decrease of 3.0 percent. The average value of pasture land in western Ohio is expected to be $5,600 per acre, with a pasture cash rent of $94 per acre.
In northwest Ohio, the average yield for poor performing cropland is 136.0 bushels of corn per acre or 40.5 bushels of soybeans per acre. The average value of poor performing cropland in this region is expected to decrease by 8.2% in 2017 to $4,821 per acre. The average rent for poor performing cropland in northwest Ohio is expected to decrease by 1.6% in 2017 to $137 per acre.
The top cropland in western Ohio is expected to be valued at $8,675 per acre, a decrease of 5.1 percent. Cash rents in western Ohio are expected to decline from 1.4 to 4.2 percent in 2017. The top cropland in western Ohio is expected to rent for $240 per acre, a decrease of 3.8 percent.
In northwest Ohio, the average value of top performing cropland is expected to decrease by 4.0% in 2017 to $8,023 per acre. The average rent for top performing cropland in northwest Ohio is expected to decrease by 2.2% in 2017 to $223 per acre.
The average value of pasture land in southwest Ohio is expected to be $5,098 per acre, with a pasture cash rent of $117 per acre. The average value of poor performing cropland in southwest Ohio is expected to decrease by 8.2% in 2017 to $4,821 per acre. The average rent for poor performing cropland in southwest Ohio is expected to remain the same.
The operating loan rate in 2017 is projected to be 4.81%, while the mortgage interest rate for a 20-year fixed loan in 2017 is projected to be 5.53%.
The study results also show that variations in cropland values and cash rents are influenced by land productivity, potential crop return, soils, drainage capabilities, field size and shape, population density, ease of access, market access, local market prices, potential for wildlife damage, field perimeter characteristics, and competition for rented cropland in a region.
A moderate increase in Bare-Cropland values and lease fees is expected in western Ohio in the coming years due to rising demand for agricultural land and inflationary pressures. However, the five-year projected percent change in cash rent for northwest Ohio is -4.78%, and -5.45% for southwest Ohio. Meanwhile, the five-year projected percent change in cropland value for northwest Ohio is -8.2%, and -5.50% for southwest Ohio.
The survey results for northwest Ohio are summarized in Table 2, and for southwest Ohio in Table 3.
