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The most common form of lease in agriculture is a land lease, with the cash rent lease and the crop-share lease being the two most frequently used leases in agriculture.
Cash rental rates for farmland depend on the local market, the quality of the rented parcel, and the landowner. In general, cropland rental rates are higher than hay and pasture land. New England cropland lease rates can range from $40 per acre/year to $300 per acre/year.
Rent Paid for Agricultural Land At $138 per acre, the average rate to rent cropland in the United States in 2018 was $2 higher than in 2017. For irrigated cropland, the average rate per acre was $215 (up slightly from $212 in 2017) and for non-irrigated cropland it was $125 (up from $123).
In a typical cash rent lease, the tenant is obligated to pay a set price per acre or a set rate for the leased land. With this form of lease, the tenant bears certain economic risks, and the landlord is guaranteed a predictable return, regardless of commodity prices.
These expenses can be recovered by renting the land for the same percentage of agriculture value. For example, if the land is worth $1200 per acre for farmland, the expenses may total only $48 60 per acre per year (4 5 percent).
For 2018, the national average for cash rents on cropland is $138 per acre, which is 1.5% higher than 2017 prices. The national average for irrigated cropland is $215 per acre, which is $3 per acre higher than 2017. Pastureland rent is flat, averaging $12.50 per acre.
For rental of established hay, an alfalfa/grass summer hay price of $120 per ton and an alfalfa/grass yield of from four to six tons per acre (Table 1) results in a rental rate per acre of from $168 ($120 per ton x 35 percent x 4 tons per acre = $168 per acre) to $252 ($120 per ton x 35 percent x 6 tons per acre = $252
The average rent I pay for hay land is between $20 to $50 an acre.
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