Source: FARM DOC DAILY, UNIV. OF ILLINOIS, 11/9/16

Cash rent as a percent of farmland price sometimes is used as a benchmark for determining the appropriateness of a cash rent level. Over time, cash rents as percentages of land prices have declined, with declines corresponding to decreases in returns of interest bearing financial assets. Until interest rates increase, cash as a percent of land price likely will remain at historically low levels.

For more of this story, click here.