Missouri Farmland, Hunting Cash Rental Rate Insights From MU Extension

BENJAMIN BROWN

COLUMBIA, MISSOURI

Missouri rental rates rose again in 2024, according to the latest cash rental rates survey from University of Missouri Extension.

More than 600 Missouri landowners and tenants responded to the survey earlier this summer and shared their insights into rental rates and leasing arrangements for cropland, pastureland, hunting land and farm facilities.

“Results from our survey indicated that, across the board, rental rates continue to increase in Missouri, but at a slower rate,” said Ben Brown, MU Extension specialist and survey organizer. “If we compare rental rates to land values, we often see them follow on a short lag. Land values strengthened in recent years and, in turn, so have rental rates. However, due to lower commodity prices and the possibility of negative cash flows in 2024 and 2025, we could see some downward pressure on rental rates.”

Based on survey responses, Missouri cash rental rates for dryland corn and soybeans rose 2% from 2023, while wheat saw an 11% increase; rental rates for hay remained flat, likely due to widespread drought conditions in 2023. Pastureland rental rates also saw an average increase of more than 10% from 2023 to 2024, likely due to forage scarcity.

Brown said Missouri’s abundance of wildlife habitat makes it a nationally recognized state for hunting. Survey responses indicate that rates for hunting leases increased an average of 6% from 2023. MU Extension offers guidance for landowners who are interested in leasing their land for hunting in “Landowners’ Guide to Lease Hunting in Missouri,” which is available for free download at https://extension.missouri.edu/g9420.

Landowners and tenants alike have advantages and disadvantages to consider with a cash rental arrangement, including flexibility and control of lease provisions, Brown said. The survey asked respondents to share characteristics of their cash rental agreements, which was 11 years tenure on average. More than three-quarters of respondents (82%) report renegotiating their leases every one to five years, leaving the window open to regularly renegotiate during the average lifespan of a lease.

As landowners and tenants prepare to discuss leases for the year ahead, access to recent data and regional breakdowns of rental rate trends can aid in informed decision-making, said Katie Neuner, MU Extension field specialist. “By having localized insights and trends available, both parties in the leasing arrangement can come to the table equipped with knowledge,” Neuner said.

“Cash Rental Rates in Missouri” is available for free download at https://extension.missouri.edu/g427.   ∆

BENJAMIN BROWN: University of Missouri