Farmland Values and Cash Rent Payments in Western Ohio for the Years 2015-2016

In a comprehensive study conducted from February to April 2016, the Western Ohio Cropland Values and Cash Rents survey revealed insights into the rental rates and values of cropland parcels across the region. The survey, which gathered responses from various professionals with knowledge of Ohio's cropland values and rental rates, aimed to provide a clearer understanding of the factors influencing these rates.

The expected return from producing crops on a farm parcel, along with the variability of that return, are the primary drivers in determining the rental rates. The survey results for average producing cropland in western Ohio showed an average yield of 169.4 bushels of corn per acre. However, poor performing cropland in northwestern Ohio averaged 130.0 bushels of corn per acre.

The shape of fields plays a significant role in determining cash rents. Square fields with fewer "point rows" generally translate into higher cash rents as operators gain efficiencies from farming fields that are square. On the other hand, fields surrounded by tree-lined fencerows, woodlots, or other borders affecting crop growth at the field edge will negatively impact yield and therefore should be considered in rental negotiations.

Other factors influencing rental rates include land productivity and potential crop return, field size and shape, drainage, 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.

Higher fertility levels often result in higher cash rents. Better surface and sub-surface drainage of a farm also leads to better yields and higher potential cash rent. The quality of the soil is another factor that influences rental rates, with higher quality soils translating into higher rents.

Large farms/fields typically command higher average cash rent per acre due to the efficiencies gained by operators. Previous crops and tillage systems that allow for an easy transition for new operators may enhance the cash rent value.

The survey results for northwest Ohio are presented in Table 2. The rent in the top cropland category is expected to equal 2.7 percent of land value in 2016. In contrast, the rent in the poor cropland category is also expected to equal 2.7 percent of land value in 2016.

The value of average cropland in western Ohio was $7,556 per acre in 2015, and is expected to decrease to $7,034 per acre in 2016, a projected decrease of 6.9 percent. Poor performing cropland in western Ohio averages 136.4 bushels of corn per acre, with an average value of $5,949 per acre in 2015. It is expected to decrease to $5,465 per acre in 2016, a projected decrease of 8.1 percent.

In northwest Ohio, top cropland rented for an average of $225 per acre in 2015 and is expected to rent for $212 per acre in 2016 (a decrease of 5.6 percent). Poor cropland rented for an average of $153 per acre in 2015, and is expected to decrease to $141 per acre in 2016, a year-over-year decrease of 7.5 percent.

Counties bordering the northwest region may contain land parcels with similar cropland value and rental rate characteristics. The Ohio Cropland Values and Cash Rents Survey expected the mixed farmland price in the western regions of Ohio to decline by about 4 percent in 2017.

The study surveyed professionals with a knowledge of Ohio's cropland values and rental rates, including farm managers, rural appraisers, agricultural lenders, OSU Extension educators, farmers, landowners, and Farm Service Agency personnel. The study results are based on 126 surveys returned, analyzed, and summarized.

The survey summary for northwest Ohio includes 12 counties and parts of Richland, Huron, and Erie Counties. The survey results provide valuable insights for farmers, landowners, and agricultural professionals in the region, helping them make informed decisions about cropland rental rates and values.