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rswfarms
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Bank Survey Finds Near-10% Rise in Cash Rents Expected for 2013

Article on expected Cash-Rents for the 2013 crop year. A 9.3% overall increase in 1 year is historically a little high for cash-rents to increase. On $500/acre cash rent dirt in 2012, that is roughly $50/acre in 2013 and roughly 23 cents per corn bushel. On $5.50 new crop corn, the $50/acre increase is easily handled. However, at $4 corn some of these cash-renters could be farming for free. Article is below:

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Bank Survey Finds Near-10% Rise in Cash Rents Expected for 2013

Mar 21, 2013

A survey of rural bankers in 10 Midwestern states finds then anticipating farmland cash rents to rise 9.3% in 2013. That finding is part of the regular monthly Rural Mainstreet Index update of rural banker attitudes conducted by Creighton University Economist Dr. Ernie Goss. The March update found: the rural economy continues expansion; bankers expect cash rents for farmland to grow by 9.3% this year; agriculture input prices are expected to grow by 6.5% from last year; and more than half of bankers reported an upturn in the percentage of farmland purchases that are bank financed.