Nebraska Extension released results from the 2020 surveys on farm custom rates, cash rent rates, and real estate values. Jim Jansen, Extension Educator for Agricultural Economics, leads the 2020 Nebraska Farm Real Estate Report, and Glennis McClure, Farm and Ranch Management Analyst Extension Educator, leads the 2020 Nebraska Farm Custom Rates Report. These are two highly sought publications because they provide farmers and landowners baseline information to help facilitate discussions and make decisions around land sales, cash rent, and custom farm operation rates.
The 2020 Nebraska Farm Real Estate Report is 71 pages and includes much more information than just average cash rent rates. USDA Nebraska Agricultural Statistical Districts or a group of counties is used to summarize the results of the report. Saline, Jefferson, Gage and nine other counties are included in the Southeast Ag Statistic District in the report. Results are broken down into four types of land including dryland cropland, gravity irrigated cropland, center pivot irrigated cropland, and pasture. Within each of these categories, average cash rent, the percent change from last year, and the low third quality and high third quality land cash rent rates are reported. Survey respondents like farm managers are asked to associate the quality of the land with cash rent rates. I have found the range in rates associated with land quality useful when talking with landowners about the location, soil type, and past yields on their land. In the Southeast Ag District, cash rent rates increased 4 – 6% from last year across the four land types. Dryland cash rent averaged $165 per acre, with low third quality at $130 and high third quality at $190 per acre. Gravity irrigated cash rent averaged $230 per acre, with low third quality at $195 and high third quality at $265 per acre. Center pivot irrigated cash rent averaged $265 per acre, with low third quality at $225 and high third quality at $300 per acre. Pasture cash rent averaged $48 per acre, with low third quality at $36 and high third quality at $62 per acre. The full report and a three-year cash rent rate summary table is on my website under the “Bottom Line” tab on the main toolbar at croptechcafe.org.
The 2020 Nebraska Farm Custom Rates publication utilizes the same USDA Agricultural Statistics Districts for summarizing survey results. The number of custom operators reporting is included along with the average rate, common rate, and range of rates by each of the 152 machine operations, services, or rentals. For the Southeast Ag District, 24 customer operators responded to the survey for mowing hay rate per acre with the average rate at $14.29 per acre, most common rate at $15 per acre and range of $10 to $20 per acre. For large round baling with net wrap, 65 custom operators responded with the average rate per bale at $14.57, most common rate at $15, and a range of $10 to $25 per bale. Again, this custom rate survey report provides a great starting point for discussing a reasonable custom rate between two parties. You can view the 2020 custom rate survey results from University of Nebraska Extension and Kansas State University on my website at croptechcafe.org under the “Bottom Line” tab on the main toolbar. Know your crop, know your tech, know your bottom line.
