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Cash rents predicted to drop in 2025
A farm management professor at the University of Illinois says cash rents are expected to decline in 2025.
Gary Schnitkey says lower return on investment is a contributing factor.
“For 2024, we’re projecting a negative $129 return for cash rent land in Central Illinois,” he says. “That’s pretty low and we would be looking at pretty low returns for 2025 as well.”
He tells Brownfield rental rates continue to vary based on location.
“It’s mainly due to productivity and the potential for returns,” he says. “If you look at some of those returns in the as rents in the southern part of the state, those happen to be on our lower productivity farm.”
Schnitkey says if landlords haven’t lowered their rental rates since 2020, next year is the time to do it.
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