Cropland values in western Ohio, which includes the northwest and southwest portions of the state depicted in the map below, are projected to decrease in 2017 compared to year-ago levels, according to the Ohio Cropland Values and Cash Rents Survey conducted by Barry Ward, agricultural economist at Ohio State University (OSU).
The survey projects a farmland value decrease of 4.4% to 8.2% in 2017 and a decline of 1.4% to 4.2% in cash rents, depending on the region and cropland class. The declines found in 2017 are slightly lower than the 5% to 11% decrease seen in 2016. The survey listed declines of 5% to 12% in 2015 and 4% to 5% in 2014.
The value of average-quality cropland, which produces 171.8 bu. of corn per acre, is expected to be $7,327 per acre in 2017. That’s a decrease of $375, or 4.9%, from 2016. The average cash rent is expected to decrease 3% to $192 per acre or $1.12 per bushel of corn produced.
Top Versus Poor Farmland
Top or high-quality cropland, which yields 203.2 bu. of corn per acre, is projected to decline 5.1% in 2017 to an average of $8,675 per acre. Rent is projected to decline 4% from a year earlier to $240 per acre in 2017 or $1.18 per bushel of corn produced.
The value of poor cropland, which yields 139.7 bu. of corn per acre, is valued at $5,698 per acre in 2017. This is a decrease of 8% from 2016. Cash rent is expected to average $150 per acre in 2017 or $1.07 per bushel of corn produced.
For the northern half of western Ohio, the value of average-quality cropland is expected to decrease 5.2% from a year earlier to $6,480 per acre. Average cash rent is projected to decline 1.7% to an average of $177 per acre, with cash rents for top and poor land showing similar trends.
In southwestern Ohio, average-quality cropland is projected to decline 4.4% to $8,134 per acre. Ave-rage rent is set to decrease 4.2% to $203 per acre. Rent is expected to slip 4.9% to an average of $255 per acre.
Looking ahead, survey respondents expect western Ohio cropland values to decline another 5% in the next five years. Cash rental rates are expected to decrease 5.2%.
The survey of 120 farm managers, rural appraisers, lenders, OSU Extension educators, farmers, landowners and others took place from February to April.
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