washington 16 - 11/28/2014 17:34

We were just running the numbers on this earlier today. I like to figure rent on % of gross revenue. Iowa State uses 27% for corn and 35% for beans.
Corn
185 bu aph x 3.60 corn = $666 gross x 27%= $180/acre rent.

Beans
54 bu aph x $9.70 beans=$523 gross x 35%=$183/acre rent.

The numbers don't lie. We are back to 2010 revenue levels.

However if a landowner talks to a farm manager or attorney or some other "expert" they will be told that their land is worth $9,000/acre and they should be getting a 4% return on investment.
$9,000x4%= $360/acre

Its going to take 3 years of low prices to get things back to normal.