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Evaluating Your Farmland Rental "Options"

Michael Langemeier, Michael Boehlje, Gary Schnitkey and, James Mintert (August, 2015)

Summary

Gross revenues for most Indiana corn and soybean farms reached unprecedented levels during 2006 through 2013, but declined sharply in 2014 and 2015. The revenue decline, which will be exacerbated on many Indiana farms by yield reductions caused by this spring and summer’s excessive rainfall, is putting tremendous pressure on operating margins. To see the picture more clearly, let’s examine a typical west central Indiana farm following a corn-soybean crop rotation.