While cropland values in Ohio increased in each of the past three years, several factors, including continued low interest rates, low debt-to-asset ratios and lower profit margins, are likely going to make for a relatively flat land market in 2015, an economist from Ohio State University’s College of Food, Agricultural, and Environmental Sciences said.
Ohio cropland value rose 8.9% in 2014, with bare cropland averaging $5,650 an acre, said Barry Ward, production business management leader for Ohio State University Extension.
Ward, citing statistics from the Ohio Field Office of the National Agricultural Statistics Service, said he expects values to be flat to modestly lower this year depending on relative crop margins and interest rates.
“Projected budgets for Ohio’s primary crops for 2015 show the potential for low margins and pressure to decrease cash rents,” he said. “On the other hand, strong equity positions together with higher property taxes will likely continue to lend support to cash rental rates.”
Lower profit margins in 2014 and 2015 will put downward pressure on rents, Ward said.… Continue readingRead More »