2001 Land Rental Guide for the Northern Piedmont

Farm Business Management Update, February 2002

By John E. Howe

The results of a rental survey completed in 2001 are provided in this report. Forty-two farmland owners and farmers who rented farmland provided information for this survey. The rental data is based on 75 different parcels of land as reported in the surveys. The surveys returned had rental information for Culpeper, Rappahannock, Fauquier, Orange, Madison, Prince William, and Loudoun Counties.

The survey results are reported for four categories: pasture, good cropland, average cropland, and the whole farm. The results shown include the average, median, mode, and range of rental values.

Table 1: Pasture Rental Information
Average Rent Per Acre	$15.80
Median Rent Per Acre	$15.00
Mode Rent Per Acre	$10.00
Rental Range Per Acre	$5.55 to $28.00
Number of Responses in Data Set	21

Table 2: Cropland Information
	Average Cropland*	Good Cropland**
Average Rent Per Acre	$19.00	$23.10
Median Rent Per Acre	$18.00	$24.50
Mode Rent Per Acre	$25.00	$30.00
Rental Range Per Acre	$10.00 to $28.00	$10.00 to $30.00
Number of Responses in Data Set	11	15

*Average Cropland: land that would normally yield less than 100 bushels of corn/acre.
**Good Cropland: land that is capable of growing over 100 bushels of corn/acre.

Definitions:
Average: is the mathematical average of the rental values for that category.

Median: is the middle value of the rental value distribution for that category.

Mode: is the most frequently occurring in rental values for that category.

The survey included information on whole farm leases. As a general rule the per acre rental rates for whole farms were within the range of rates reported for pasture and crops as separate categories. For planning purposes it is recommended that you use the lease rates for pasture and cropland plus the value of buildings to be leased when determining an equitable leasing rate.

A number of people who completed surveys indicated that they paid no rent for the pasture, cropland, or the entire farm. These responses were not included in the calculations of the averages, medians, modes, or ranges of the rental values. Some of the respondents indicated that no rent was charged in exchange for maintenance of the property or for other reasons. The number of responses that indicated no rental payments is listed in Table 3.

Table 3: Farm Rental Arrangements With No Cash Payments
Pasture	10
Good Cropland	2
Average Cropland	2
Whole Farm Rentals	1

Other Leasing Facts

• A written lease was used in 53% of the leasing arrangements reported in this survey.
• The most commonly reported lease length was one year for pasture, good cropland, and average cropland.
• The average lease for good cropland was 2.1 years with no leases longer than five years.
• The average lease for average cropland was 1.2 years, and three years was the longest term reported.

Pasture Leases

• In 90% of the pasture leases the tenant is expected to provide one or more of the following as part of the leasing arrangement:
  • Minor repairs to fences, corrals, or buildings (85%)
  • Pasture fertilization (60%)
  • Weed control (60%)
  • Lime (50%)
• In 18% of the pasture leases, the owner supplied one or more of the following items: herbicides, fence building supplies, or lime.
• A one year lease was the most common lease length, and the average length of a pasture lease was 1.7 years.

Contact the author at jhowe@vt.edu

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