Cropland Cash Rental Rate Estimator | ISU Ag Decision Maker (C2-20)
ISU Extension Ag Decision Maker C2-20

Cropland Cash Rental Rate Estimator

Calculate fair market farmland cash rental rates using 6 standardized methodologies with fully customizable crop production, harvest, interest, labor, and tenant return parameters.

1. Yield, Price & Government Payments Gross Income Inputs

Parameter
Corn
Soybeans
Crop Acres
Expected Yield (Bu/Acre)
Expected Price ($/Bu)
$
$
Total USDA Payment Total farm $ allocation
$

2. Itemized Production Costs ($/Acre) Inputs & Field Ops

Seed
Fertilizer
Lime
Herbicides
Insecticides
Crop Insurance
Miscellaneous Inputs
Custom Hire
Fuel & Repairs
Machinery Ownership

3. Operating Capital Interest Input Interest Parameters

%
Calculated Interest ($/Acre)
$18.25/ac
$11.20/ac

4. Post-Harvest Handling Costs ($/Bushel) Bushel Rates

Post-Harvest Category
Corn ($/Bu)
Soybeans ($/Bu)
Drying Cost
Storage Cost
Transportation Cost
Total Handling ($/Acre)
$52.50/ac
$7.80/ac

5. Labor & Desired Tenant Return Labor & Profit

$
Desired Tenant Profit ($/Acre)
Total Nonland Costs ($/Ac) $672.05 $422.00
Methodologies Benchmark
Average of ALL Methods
$236.65 / acre
Lowest Method: $175.98 / ac
Highest Method: $285.00 / ac

Estimated Rental Rates by Method

1. Expected Yield Method $277.50/ac

Based on corn ($1.34/bu) and soybean ($4.56/bu) historical rental factors.

2. CSR2 Productivity Index $230.40/ac
3. Share of Gross Crop Value $250.23/ac

Assumes 30% Corn gross value + 41% Soybean gross value.

4. Share of Gross Crop Revenue $240.58/ac

Assumes 28% Corn + 38% Soybean revenue (including USDA payments).

5. Return on Land Value (ROI) $285.00/ac
6. Shared Risk-Return (50/50) $196.86/ac

50% gross crop revenue minus 50% shared input & post-harvest costs.

7. Tenant’s Residual Method $175.98/ac

Gross crop value remaining after deducting all production costs, labor & desired tenant return.