Review of land rental prices for the region.
irtual TSCRA Convention – September 15-16
Virtual Master Marketer Seminar Series – September 29 – October 29
TCFA 2020 Annual Convention – October 5
Local Market Conditions
Each August USDA NASS releases cash lease rates by county for the U.S. The rates from surveyed participants include the “going rate” for irrigated cropland, dry cropland, and pastureland. The results of the survey for our region are detailed below.
Irrigated cropland had the fewest responses in the High Plains, as usual. In general cash lease rates for the region are climbing. The average lease price of irrigated cropland for the region is $96/acre, up 11% over $83/acre in 2019. The greatest increase in irrigated lease price is happening in the northernmost counties of the district. The lease price for irrigated cropland in Hartley county rose from $124/acre in 2019 to $194/acre in 2020, a 60% increase. Both Sherman and Ochiltree county saw similar, though smaller, increases since their last reported years.
Irrigated Cropland Cash Lease Rate, $/Acre, AgriLife District 1, 2014-2020
Unlike irrigated cropland, the price of non-irrigated cropland continues to decline year over year in parts of the district while climbing in other areas. The average lease price of non-irrigated cropland rose 17% in 2020, from $22/acre to $23/acre. County groupings are more sporadic in this category. In general, the cost of dry cropland in the cluster of northernmost counties rose, though not to the extent of irrigated cropland. The change in rates in southern counties was much more mixed. For example, the average price of leased dry cropland in Swisher and Castro county remained stable at $27 and $36/acre, respectively. However on either side, the price of leased dry cropland in Parmer county fell from $28 to $27/acre while the price in Briscoe county rose from $19 to $21/acre.
Dry Cropland Cash Lease Rate, $/Acre, AgriLife District 1, 2014-2020
On average, the price of rented pastureland rose by 3%, from $7/acre to $8/acre. The southernmost pocket of District 1 saw the most consistent decline in lease price, with prices falling 15% and 12% in Briscoe and Hall county, respectively. Prices also fell in Gray, Hansford, Hemphill, Hutchinson, and Moore counties, but rose or remained stable elsewhere. As with cropland, the greatest increases in pasture lease rates occurred in the northeastern corner of the district. The price of leased pastureland rose 17% in Sherman and Dallam counties. The recent AgriLife Custom Rate Survey results tell us that this cash lease rate is interchangeable with a gain contract of approximately $0.55/lb.
Be sure to review the price of your lease prior to making winter forage decisions and prior to contracting winter stockers. The Texas Ag Law Blog recently included a discussion of lease rates and resources for those leasing land, whether owner or operator.
This week’s chart has to do with conservation, and again comes from ERS’s Charts of Note page. Answer to follow on Wednesday!