Land rents remain one of the top expenses for farmers. “Between 30 and 33 percent of corn revenue ends up, if you’re renting ground, going into the landlord’s pocket,” said Michael Swanson, chief agricultural economist, Wells Fargo. “If someone in your market is feeling bullish and challenging everyone’s cash rent, you’re in a tough spot because if you want to hang onto it, you have to match it or give the landlord a reason why they should stick with you at a more reasonable price.” Swanson says cash rental rates across the Midwest are up. “Landlords aren’t oblivious to the fact that there are good years.”
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