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Farmland Rental Values in Wisconsin
Farmland Rental Values in Wisconsin
Home » Ag Land Pricing and Contracts » Land Lease and Rental Agreements » Farmland Rental Values
Determining a farmland rental rate is not an exact science. Local demand and supply conditions, anticipated market conditions, and long-standing working relationships can have bearing on rental rate negotiations. Only the parties involved in the agreement can determine what is ‘fair.’ However, there are resources available to help inform both landlord and farmer.
It is helpful to begin the conversation with an objective source. Each year, the National Agricultural Statistics Service and Wisconsin Department of Agriculture, Trade and Consumer Protection publish a County Cash Rent Report of cash rental averages for non-irrigated cropland and pastureland in Wisconsin.
View Past Reports »
Again, farmers and landlords may use the local ag land rental rate data from the report to begin their farmland rental discussion. This farmland rental data should be used as a guide when discussing the price of rent, rather than an absolute. The data does not account for variations in the:
- Available land (such as soil type, yield potential, local demand, and the ease of reaching and farming those acres)
- Farm economy (such as current commodity prices and input prices)
- Other lease terms (such as conservation, fertilization, tiling, improvements, or other obligations or restrictions on the part of the landlord or tenant)
Relying solely on the average rental rate data may lead to an inaccurate conclusion about the ‘fair’ costs of farmland rental.
Average rental rate for non-irrigated cropland
Non-irrigated cropland cash rent averaged $158.00 per acre in Wisconsin during 2024, $7.00 higher than 2023 according to the latest report released by USDA’s National Agricultural Statistics Service. Lafayette County had the highest cash rent for non-irrigated cropland at $261.00 per acre, followed by Grant County at $244.00 per acre. Dane, Kewaunee, and Green rounded out the top five published counties. Douglas County, at $14.00 per acre, had the lowest average cash rent for non-irrigated cropland.
Average rental rate for pasture
Pasture rented for cash averaged $41.00 per acre, $3.50 above 2023. Rock had the highest published pasture cash rent at $69.00 per acre, followed by Lafayette at $65.00 per acre. Bayfield County had the lowest pasture cash rent at $10.00 per acre.
Additional data for irrigated cropland and land with buildings is available from the complete USDA Cash Rent Surveys.
Other Factors Impacting Rental Values
As discussed above, there may be other factors that impact ag land rental rates, such as the soil type, local demand, ease of access, restrictions on the land, conservation or fertility obligations, or length of the agreement. A struggling farm economy, caused by low commodity prices, may make it more difficult for farmers to afford rent increases. Farmers may wish to consider how a proposed rental rate will impact their break-even cost by reviewing their cash flow budgeting.
Soil type and yield potential can impact the profitability of farming a specific piece of land. If the parties do not know the land’s soil type or yield potential, consider using the USDA Natural Resource Conservation Service Web Soil Survey. Keep in mind that the yield potential is a benchmark assuming average weather and fertility maintenance. It may be helpful to compare the field’s yield potential to the county average as a reference.
Local demand also influences local prices. One can gather information by talking with neighbors, but a more accurate assessment may be to talk with a regional agriculture extension educator, or even by publicly advertising the property.
The number of contiguous acres and ease of farming also impacts the demand for a particular field. A flat 80-acre field with ease of access is potentially more valuable than a cluster of ten-acre fields of odd shape with knolls, swales and springs with deteriorating or no direct access road.
Another factor affecting rental rates may be enrollment in certain government programs, such as Farmland Preservation or Farm Bill programs, which may allow for payments tied to those acres from those programs.
The length of rental contract can also impact rates. A longer-term contract, or one coupled with a right of first refusal, may demand a higher rate. The longer contract term may also encourage investment in the property to manage soil fertility or soil conservation.
Keep in mind that managing soil fertility and soil conservation, whether that is applying lime and fertilizer, creating contour strips or grass waterways, mandating specific tillage practices, or another obligation, have a cost to the farmer. Landowners may wish to consider accepting a lower rental rate in an agreement that also requires the farmer tenant to make investments in soil fertility and conservation and manage the land for the long term.
