FACTORS INFLUENCING THE INCREASED POPULARITY OF CASH RENT FARMLAND LEASES IN ILLINOIS

Publication Date

4-5-2019

Document Type

Poster

Degree Type

Graduate

Department

Agriculture

Mentor

Maria Boerngen

Mentor Department

Agriculture

Abstract

In recent years, cash rent leases have become increasingly popular amongst farm landowners in Illinois. Since 1995, Illinois has seen a 44% rise in cash rent lease usage in Northern Illinois, a 105% increase in Southern Illinois, and a 117% increase in Central Illinois. The rise in cash rent lease usage has been attributed to many factors such as crop yields, commodity prices, urban influence, and desire for the land. This study aims to determine which factors are the most pivotal in driving the shift toward the use of cash rent leases in Illinois. Using data from the USDA National Agricultural Statistics Service (USDA-NASS), Illinois Farm Business Farm Management Association (FBFM), and the Illinois Society of Professional Farm Managers and Rural Appraisers (ISPFMRA), the determinants mentioned above will be examined to explore the differences in the use of cash rent leases, crop share leases, and owner-operated acres. Comparisons will be made across regions in Illinois (Northern, Central, and Southern). Differences in professionally-managed land and non-professionally-managed land will be examined as well. Then, the factors mentioned above will be examined to see the correlations that they have with lease values and the corresponding trends. By doing this, the study aims to identify the biggest factors in why lease trends are so dynamic.

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