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Similarly, the average value of cropland, including all land and buildings on farms, was $3,160 per acre for 2020, unchanged from 2019's record high. The average value for pastureland was $1,400 per acre for 2020, again unchanged from 2019.
According to the USDA's Economic Research Service, average cash rents for irrigated cropland in Louisiana ranged from $81 to $97 per acre over the past five years. Cash rents on nonirrigated cropland ranged from $66 to $67 during that same period, while rents on pastureland ranged from $16 to $27 per acre.
The average value for pastureland was $1,400 per acre for 2020, again unchanged from 2019. Cash rental rates for cropland averaged $139 per acre in 2020, down $1 per acre from 2019. The stability in agricultural land values and cash rents occurs amid continued pressure on farm income and commodity prices.
Most farmers find that a combination of both ownership and leasing is desirable, especially when capital is limited. For many new farmers, especially in areas where land is quite expensive, leasing land is often the best option.
According to the USDA's Economic Research Service, average cash rents for irrigated cropland in Louisiana ranged from $81 to $97 per acre over the past five years. Cash rents on nonirrigated cropland ranged from $66 to $67 during that same period, while rents on pastureland ranged from $16 to $27 per acre.
Land used to grow grasses or other herbaceous forage, either grown naturally (self-seeded) or through cultivation (sown), which has not been included in the crop rotation for five years or more.
For Texas, the average lease rates for 2020 are: Irrigated cropland: $95.00 (up $3.00 from 2019) Non-irrigated cropland: $30.00 (No change) Pastureland: $7.00 (up $0.20 from 2019)
Over the last 20 years, farmland rental rates per acre in texas have risen from an average of $43 per acre in 2019 to $43 per acre in 2019.
A farm lease is a written agreement between a landowner and a tenant farmer. Through a farm lease, the landowner grants the tenant farmer the right to use the farm property. Key terms of basic leases include the length of the lease, rent amounts and frequency of payment, how to renew or end the lease, and more.
Farmland provides attractive returns paired with low volatility. Not only is farmland a good investment in an inflationary environment farmland also provides robust average annual returns. Between 1992 and 2020, farmland provided average annual returns of nearly 11%, including income and price appreciation.