Cropland values have climbed for four years in a row, but three out of four farmers expect cash rental rates in 2025 to remain the same this year, said a Purdue University poll on Tuesday. The monthly Ag Economy Barometer said the rest of producers were split fairly evenly between those who expected an increase and those expecting a decrease in rental rates.
“Farmland leasing discussions for the 2025 crop year are starting to take place across the nation,” wrote agricultural economists James Mintert and Michael Langemeier, who oversee the barometer. Purdue queried corn, soybean, wheat, and cotton producers about their expectations. Analysts have said the continuing decline in commodity prices would squeeze farm finances and pressure land values.
“Nearly three-fourths (72%) of farmers who responded to the July survey said they expect cash rental rates to remain about the same as in 2024,” they said. “The remaining respondents’ views on cash rental rates were split almost evenly between those who expect rates to rise (15%) vs. those who expect rates to fall (13%). ”
The barometer, a reading of farmer sentiment, had a reading of 113 in July, an increase of eight points from the previous month but 10 points below its reading a year ago.
For the Ag Barometer, Purdue interviews operators with production worth at least $500,000 a year. According to USDA data, 7.4 percent of U.S. farms have annual sales of $500,000 or more. The survey has a margin of error of plus or minus 5 percent. The latest survey was conducted from July 12 to 19.
The Ag Economy Barometer is available here.