Figuring Cash Rents by Equation
USDA NASS released average cash rents by county September 6th, 2013. These county cash rents were used by ILLINOIS Farm Management Specialist Gary Schnitkey to develop a relationship between average rents and expected corn yields. The equation relating 2013 expected corn yields to average cash rents is: average cash rent = -227 + 2.7 x 2013 trend corn yield
This equation can be used to find average rent for a given expected corn yield says Schnitkey. A farm, for instance, with an expected corn yield of 180 bushels per acre would indicate an average cash rent of $259 per acre ($259 = -227 + 2.7 x 180 bushel expected corn yield).
You may read how Schnitkey developed the equation, see how Illinois counties fit into the trend line, and what it might mean for 2014 cash rents on the FarmDocDaily website. You may also LISTEN to our interview with Schnitkey about the Cash Rent Study.