Commodity Pricing Boom Drives Rent Prices

Commodity Pricing Boom Drives Rent Prices

With the agricultural commodities pricing boom comes a host of other market realities.  One of these is cropland values, which have increased steadily since the 2020 harvest.  Rental costs for farmland in turn have risen considerably for the 2021 cropping season.  The entire market is supercharged by high grain prices, primarily driven by a favorable supply and demand picture.  Government program payments, crop insurance, and historically low interest rates has provided added impetus to farmers to snatch up acreage. 

The increased operational cost to farmers is one thing, but the competition for good ground can be fierce in farm country.  Conventional hempseed producers looking to farm leased ground in 2021 may abandon their rental plans if increased rent payments make enough of an impact on returns, which it will for producers expecting $.55/lb for their crop.   

Certified organic ground is routinely…

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