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2001 Land Rental Guide for the Shenandoah Valley
Farm Business Management Update, February 2001
By Jack Dunford and Bill Whittle
During late fall 2000, the Extension's Northwest District Farm Business Management staff in cooperation with Extension Agents-Agriculture and Natural Resources surveyed Shenandoah Valley farmers in 13 counties on land rental values. Information from past surveys has been widely used by Extension Agents, landowners, tenants, agricultural lenders, and others. This information is a starting point for determining fair market rental value for land.
The tables summarize the results of the 2000 survey. Averages are reported by county and the overall Valley region. All averages are Weighted Averages - larger tracts of land rented at a given rate have more influence on the overall average rate than a small parcel of land. Rental rates are reported for pasture per acre and per head; good cropland (ability to average more than 100 bushels of corn equivalent in a typical year); average cropland (ability to average less than 100 bushels of corn equivalent in a typical year - this category also contains hay land); whole farm leases; and dairy farm leases. The reliability of the average figures reported increases as the number of responses increases. Within a rental category, the very high rental rates were generally for smaller parcels of land, and the very low rental rates often had other circumstances involved such as the desire to maintain Land Use Valuation on the parcel.
The terms for the length of leases vary tremendously from contract to contract. The tables below provide the average length of lease for a general type of rental; however, the average tells only part of the story. Knowing the length that farmers and landowners have negotiated for leases is very valuable. Table 1 shows the average length as well as the range involved for the general types of leases. Even though many of the leases reported are for only one year, many farmers are attempting to secure leases for several years to assure a known land base for their farming operations over time.
Table 1. Length of Lease (Reported in Months)
| Land types | Average Length | Short | Long |
| Pasture | 18 | 3 | 240 |
| Good Crop Land | 23 | 12 | 180 |
| Average Crop Land | 22 | 12 | 120 |
| Whole Farm | 27 | 12 | 180 |
| Valley Dairies | 35 | 12 | 84 |
| Pasture per Head | 3 | 60 |
Table 2. Lease Rates for Whole Farm
| County | # | Average Length of Lease (Months) | Average Per Acre | Low | High |
| Botetourt | 8 | 29 | $17.03 | $4.40 | $35.00 |
| Craig | 12 | 17 | $9.50 | $3.33 | $37.00 |
| Roanoke | 2 | 60 | $8.20 | $7.29 | $8.75 |
| Augusta | 43 | 29 | $27.70 | $5.77 | $97.67 |
| Bath | |||||
| Highland | 6 | 40 | $26.75 | $22.22 | $36.00 |
| Rockbridge | 8 | 18 | $20.77 | $9.38 | $45.00 |
| Rockingham | 39 | 26 | $41.19 | $7.00 | $100.00 |
| Clarke | 4 | 24 | $11.54 | $3.33 | $21.43 |
| Frederick | 3 | 40 | $18.86 | $10.00 | $30.83 |
| Page | 4 | 36 | $33.84 | $11.43 | $50.00 |
| Shenandoah | 7 | 15 | $26.04 | $6.25 | $60.00 |
| Warren | |||||
| Valley Average | 136 | 27 | $25.32 | $3.33 | $100.00 |
Table 3. Lease Rates Good Crop Land
| County | # | Average Length of Lease (Months) | Average Per Acre | Low | High |
| Botetourt | 9 | 24 | $26.15 | $20.00 | $35.00 |
| Craig | 5 | 17 | $30.17 | $2.00 | $35.00 |
| Roanoke | |||||
| Augusta | 36 | 25 | $46.23 | $25.00 | $200.00 |
| Bath | |||||
| Highland | |||||
| Rockbridge | 5 | 12 | $28.41 | $18.00 | $41.00 |
| Rockingham | 39 | 32 | $58.28 | $30.00 | $150.00 |
| Clarke | 12 | 16 | $15.66 | $1.85 | $25.00 |
| Frederick | |||||
| Page | 7 | 12 | $36.33 | $18.00 | $40.00 |
| Shenandoah | 17 | 16 | $31.44 | $20.00 | $50.00 |
| Warren | 1 | 36 | $15.00 | ||
| Valley Average | 131 | 23 | $43.03 | $1.85 | $200.00 |
Table 4. Lease Rates Average Crop Land
| County | # | Average Length of Lease (Months) | Average Per Acre | Low | High |
| Botetourt | |||||
| Craig | |||||
| Roanoke | 2 | 12 | $14.61 | $14.29 | $16.00 |
| Augusta | 19 | 17 | $29.37 | $8.00 | $60.00 |
| Bath | 12 | 30 | $21.51 | $5.00 | $35.00 |
| Highland | 2 | 12 | $20.00 | $20.00 | $20.00 |
| Rockbridge | |||||
| Rockingham | 22 | 28 | $46.34 | $16.00 | $100.00 |
| Clarke | |||||
| Frederick | 10 | 14 | $15.70 | $9.00 | $25.00 |
| Page | 12 | 24 | $32.23 | $20.00 | $40.00 |
| Shenandoah | 14 | 17 | $18.63 | $12.00 | $25.00 |
| Warren | |||||
| Total ---- Actual Range | |||||
|---|---|---|---|---|---|
| Valley Average | 93 | 22 | $28.97 | $5.00 | $100.00 |
Table 5. Lease Rates Pasture, Per Acre
| County | # | Average Length of Lease (Months) | Average Per Acre | Low | High |
| Botetourt | 11 | 13 | $8.27 | $3.60 | $25.00 |
| Craig | 13 | 12 | $12.92 | $1.00 | $30.00 |
| Roanoke | 2 | 12 | $18.12 | $17.14 | $25.00 |
| Augusta | 60 | 19 | $20.82 | $10.00 | $105.00 |
| Bath | 16 | 17 | $11.33 | $2.11 | $50.00 |
| Highland | 22 | 18 | $12.25 | $5.00 | $21.43 |
| Rockbridge | 15 | 15 | $17.93 | $10.00 | $28.00 |
| Rockingham | 57 | 18 | $23.94 | $6.00 | $60.00 |
| Clarke | 23 | 17 | $14.83 | $1.85 | $30.00 |
| Frederick | 12 | 37 | $12.64 | $5.00 | $25.00 |
| Page | 14 | 17 | $24.88 | $10.00 | $35.00 |
| Shenandoah | 29 | 14 | $13.21 | $6.67 | $24.00 |
| Warren | 3 | 12 | $11.38 | $10.00 | $16.00 |
| Total ---- Actual Range | |||||
|---|---|---|---|---|---|
| Valley Average | 277 | 18 | $16.19 | $1.00 | $105.00 |
Table 6. Lease Rates, Pasture, Per Head
| County | # | Average Length of Lease (Months) | Average | Low | High |
| Augusta | 1 | 12 | $6.00 | ||
| Highland | 2 | 9 | $7.29 | $6.66 | $8.00 |
| Clarke | 4 | 9 | $7.53 | $7.50 | $8.00 |
| Botetourt | 1 | 12 | $5.00 | ||
| Augusta | 7 | 12 | $5.53 | $4.00 | $6.50 |
| Highland | 6 | 6 | $6.90 | $5.00 | $8.00 |
| Rockingham | 3 | 12 | $6.07 | $6.00 | $8.00 |
| Shenandoah | 6 | 10 | $4.57 | $1.15 | $6.00 |
| Botetourt | 3 | 28 | $6.50 | $5.00 | $7.69 |
| Craig | 1 | 12 | $10.00 | ||
Table 7. Valley Dairy Farms
| # | Average Length of Lease (Months) | Average | Low | High |
| 9 | 35 | $267.85 | $128.21 | $738.64 |
Crop Land: In some counties the cropland was combined into one category because of few responses.
Whole Farm: Whole farm leases often contain a mix of pasture, cropland, and wooded land. Structures such as barns or shelters are often included.
Dairy Farms: Dairy farm leases include milking facilities and some land. Residences are occasionally included.
A total of 336 landowners and tenants representing 611 separate lease agreements responded to the survey. Below are results from the questions asked on the survey.
Do you own the land or rent the land reported in the survey? 46.7% said they owned the land; 59.2% said they were the tenants; many responded that they both owned land that was being rented and were renting other land.
Are your lease agreements oral or written? 44.3% said they had written leases; 70.7% said they had oral leases; many responded that they had both oral and written leases.
Does the tenant supply inputs in addition to cash rent? 53.6% said they supplied fertilizer; 41.7% said they supplied lime; 47.9% said they supplied weed control; 66.7% said they supplied minor fence, corral and/or building repair. Other inputs supplied by the tenant that were mentioned several times were bushhogging, snow plowing, caring for landowners few cows, reseeding, and labor for new fence.
Does the landowner supply any inputs? 6.8% said they supplied herbicides; 38.1% said they supplied fence building supplies; 7.4% said they supplied lime. Other inputs supplied by the landowner that were mentioned several times were fertilizer, seed, and building new fence.
For more detailed information on land leases, contact your Farm Business Management Agent or the Extension Agent located in your county.
Contact the author at dunford@vt.edu
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