Setting 2025 Cash Rents

We present information helpful in evaluating cash rent levels for the 2025 production year (see farmdoc daily, July 30, 2024). In recent years, average cash rents published by the U.S. Department of Agriculture have shown significant increases, with the impetus for those increases coming from above-average farming returns from 2020 to 2022. However, returns likely will be negative in 2024. As a result, a survey by the Illinois Society of Professional Farm Managers and Rural Appraisers suggests decreases in cash rents in 2025 are expected. Given that returns are expected to remain low in 2025, substantial declines in cash rents seem warranted. As a benchmark, reducing cash rents back to 2020 levels would help, particularly for cash rents that are at or above NASS averages.