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Cash rents projected to decline, slightly

A farm management professor at the University of Illinois says average cash rents should come down this cycle.

Gary Schnitkey tells Brownfield…

“We are projecting lower cash rents for 2025, but overall, we’re projecting a $20 decline.”  He says, “We’re modeling it after the mid 2000’s; the last time we said a pretty large decline in prices.”

He says while helpful, the projected declines likely won’t be enough to improve most farmer’s profitability.

“Cash rents are sticky.”  He says, “They go up easier than they come down, and they gotta be a much lower than actually what we’re projecting to have profitability.”

Schnitkey says cash rent negotiations this fall should account for a second straight year of projected lower farm incomes in 2025. 

AUDIO: Gary Schnitkey – U of I