The USDA National Agricultural Statistics Service recently published their 2020 Cash Rental Rate Survey results. This report provides average cash rental rates by state and by county for irrigated cropland, non-irrigated cropland, and pastureland.
Keep in mind these numbers are merely averages based on survey responses provided to USDA. The lease rate for a particular property will depend on a number of factors such as the quality and quantity of grass, health of the soil, the existence of and quality of fences, access to water, brush situation, average yields, etc. These published reports at least give a person a ballpark when looking at a particular property.
All numbers below are reported as per acre, per year.
The nationwide average cash lease rate results are as follows:
- Irrigated cropland: $216.00 (down $4.00 from 2019)
- Non-irrigated cropland: $126.00 (down $1.00 from 2019)
- Pastureland: $13.00 (No change)
The following states reported the highest and lowest average cash lease rates:
- Irrigated cropland: California at $497/acre and Oklahoma at $80/acre. To see results for all 50 states, click here.
- Non-irrigated cropland: Iowa and Hawaii at $230/acre and Wyoming at $16/acre. To see results for all 50 states, click here.
- Pastureland: Delaware at $55/acre and Arizona at $2.40/acre. To see results for all 50 states, click here.
Additionally, NASS reports average lease rates broken down by county. To look up the data for your county, click here.
For Texas, the average lease rates for 2020 are:
- Irrigated cropland: $95.00 (up $3.00 from 2019)
- Non-irrigated cropland: $30.00 (No change)
- Pastureland: $7.00 (up $0.20 from 2019)
To view data for each region and county in Texas, click here.
The most important thing for any agricultural lease is to ensure the lease is in writing. There are a number of reasons for this, but having a written lease agreement is the best way to protect not only one’s assets, but also one’s relationship with the other party. We’ve got a handbook that focuses on grazing, hunting, and livestock leases and includes checklists and sample lease language. You can download that here.
Additionally, each year we host a number of Ranchers Leasing Workshop events around the state. This year, we also released our Online Ranchers Leasing Workshop. This three-hour course allows you to obtain all the same content as our live workshops, but to do so from your own home at your own pace. For more information on the Online Ranchers Leasing Workshop, click here. We plan to hold several live workshops in 2021, so stay tuned for those dates to be announced.
Lastly, for those of you in Texas, the Rural Land Value Trends Report is also a great source of lease rate information. For more info, click here.