Page 15 - MWC 8-25-2022s

more broadly but has target- ly driven up these rental costs The Midwest Cattleman · August 25, 2022 · P15
ed areas with less density of at a higher rate than other ag Summary the board further exacerbated
high value row crops and more land as ranchers scramble for USDA’s land value report by inflationary pressures, high
regular precipitation such as alternatives to graze livestock. showed sharp increases across
the South and mid-South. By Margins for producers who the board in agricultural real rent and land costs are yet an-
other hurdle for farmers and
percent increase, however, rely on rented land are jeopar- estate values, cropland val- ranchers working to produce
the leaders are Kansas (+23% dized by even marginal chang- ues and pastureland values. more crops and raise more live-
year over year) and Idaho and es in rental rates. The high- The average U.S. farm real
South Dakota (tied at +16%). er rates rise, the fewer acres estate value increased by a stock. Fortunately for produc-
On Aug. 5, NASS also re- farmers can afford to rent, record $420 per acre, or 12% ers who own land, their equity
leased data on cash rents, and reducing their annual pro- over 2021, while the cropland has increased, but for those
just starting out or reliant on
so far, the strong increases in duction output. More broadly, value and pastureland value the acres they rent to make
land values have translated those who lack equity from increased by 14% and 11.5%, ends meet, these increases can
to moderate increases in cash land ownership have reduced respectively. Cash rents have become an unbreachable bar-
rent. This tends to be more of access to operating lines of also jumped, ranging from rier to entry.
a lagging indicator and likely credit needed to fund annual 4.6% to 7.7% across cropland,
will be reflected in future ne- equipment and input purchas- irrigated and non-irrigated, American Farm Bureau
gotiations that producers have es, and the variation in their and pastureland. In a period of Federation
with their landlords. Average land cost can often take away heightened input costs across
U.S. cropland rent increased the benefits of high crop prices.
to $148 per acre this year, an
increase of 5% over 2021. Irri-
gated cropland rents increased WHY ARE WE STILL HERE AFTER MORE THAN 25 YEARS?
4.6% to $227 per acre, while
non-irrigated cropland rents
increased 5.5% to $135 per
acre. Cash rents for pasture-
land had the largest increase
between 2020 and 2021, com-
ing in at $14 per acre this year
or 7.7% higher than last year.
With drought across the West
reducing the quality of public
rangelands, demand for scarce
leased private range has like-

Callaway

Livestock

Center, Inc.

On I-70, 4 miles east of
Kingdom City, MO on outer road

573-642-7486

MAKE SURE YOU ARE
Feeder Sale

Monday IN OUR SPECIAL

12:30 p.m. CHAROLAIS

1st Thursday Night FEATURE
of Each Month SEPTEMBER 15
6TH
6:00 p.m.

Special Cow Sale

Jack Harrison
573-386-2138

John P. Harrison

573-386-5150 PHONE: 417-644-2993 - EMAIL: CATTLEMAN@CUTTINGEDGEUS.COM