This is Nathan Mueller, UNL Cropping Systems Extension Educator in Fremont, NE. With the drop in commodity prices, many tenants and landowners are discussing what reasonable cash rent rates should be for 2015.
The 2014 survey by United State Department of Agriculture showed the average cash rent for non-irrigated cropland in Dodge County was a 208 dollars per acre and 280 dollars per acre for irrigated cropland. For a complete map of cash rent on a county and crop reporting district basis across Nebraska for dryland, irrigated, and pasture ground visit my blog at croptechcafe.org.
Historical cash rent rates based on survey data from University of Nebraska Lincoln show the average cash rent of non-irrigated cropland was 136 dollars per acre in 2009, only 5 years ago, for both the northeast and east-central Nebraska. Data collected in 2014 showed the average cash rent for non-irrigated cropland increased to 245 and 215 dollars per acre for northeast and east-central Nebraska, respectively.
University of Nebraska Lincoln Extension on December 2nd from 1:30-3:30 will be holding a landlord and tenant meeting in Blair at the Blair City Council meeting room. Topics will include landlord-tenant relationships, cash rental rate outlooks for 2015, and efficiently managing input cost for maximum return. The details of this meeting can be found at my blog at croptechcafe.org.
It may seem obvious, but managing for maximum profit is not the same as managing for maximum yield in this market. You will need to decide what probability of return on your inputs you are comfortable with in this market.
This is Nathan Mueller, UNL Extension Educator in Fremont, NE on KTIC radio.