Farmer Returns Under Different Lease Designs

Nick Paulson, Gary Schnitkey and Carl Zulauf

farmdoc daily, 2025, vol. 14, issue 178

Abstract: Current projections suggest three consecutive years of negative farmer returns to corn and soybeans on cash rented farmland in Illinois from 2023 to 2025. Alternative lease arrangements, such as variable cash or share leases, provide more risk sharing to the farmer. However, today’s article shows that the current environment of relatively low prices and high costs implies negative returns even for a typical variable cash lease and returns just under break-even for a standard 50/50 share lease.

Keywords: Agribusiness; Weekly Farm Economics (search for similar items in EconPapers)
Date: 2025
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Persistent link: https://EconPapers.repec.org/RePEc:ags:illufd:358428

DOI: 10.22004/ag.econ.358428

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