Farm Leases Expected to be Steady or Modestly Decrease in 2025

Farm leases are expected to remain steady or see a modest decrease for 2025, according to Cole Nickerson, with Farmers National Company.

“Like anything, when profitability and agriculture falls, there’s pressure on them. So, we’re still early in that season, but we’re starting to do some different analysis on where break evens are going to be and what we can do for rents”.

Nickerson says there is some uncertainty in Nebraska. “I’d expect flat to maybe slightly lower across the state, but it’s certainly area dependent.”

He advised for farmers wanting to sell land, be realistic with your expectations. “You very well may get your price that we received two years ago for your land, but things are a little bit tougher right now. Secondly, consider all your options when you’re selling your ground. It may not be the best time if you have a marginal piece of ground to auction.”

EDITOR’S TAKE:

Land rents escalate in prosperous times, but are slow to recede when the farm economy hits a rough patch. It is good news that the big land management companies are beginning to take the lead in examining where rents should be in the current farm/ranch economic environment. It would be welcome news for farmers/ranchers if cash rents went down modestly in 2025. Such a development would help them improve profit margins. Better profit margins lead to better truck sales. But you can also help by promoting AgPack®. Our AgPack® partners now offer up to $40,000 in exclusive rebates and discounts on products that farmers/ranchers use every day.