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Farmers prepare for higher rental rates in 2024
A farm business management coach and attorney in eastern South Dakota says land rental rates are increasing with farmland values.
Clint Fischer tells Brownfield, “I’m seeing some increases in the 10% range for those coming out of a three-year lease that didn’t have any escalation amount included.”
Fischer says some farmers are finding creative ways to negotiate higher land rents with flex-rents or crop shares. Farmers are also sharpening their pencils figuring out how to make higher land rents work.
“It’s going to depend on the operation, but oftentimes, we can find efficiencies when it comes to equipment and labor. We might be able to source some inputs a little differently.”
He says a good marketing plan is important in balancing out any rising costs and farmers should know their cost of production per acre for success in 2024.
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Author: Carah Hart