Leases Expected to Remain Steady or Modestly Decrease

As farmers wrap up the current crop year and begin planning for 2025, one of the more crucial first steps in preparing for a successful crop season is securing farm leasing arrangements. In the Midwest, farm lease negotiations typically begin in August and ramp up as fall sets in. Tenants often prefer to finalize lease terms early to facilitate timely purchases of inputs and to start field operations promptly after harvest. While cash rental rates have gradually risen in recent years, Farmers National Company says the current market environment suggests uncertainty is on the horizon. As commodity prices and farm income are expected to al, FNC anticipates that most leases for 2025 will either remain steady or see a modest decrease. That’s assuming they were set at market rates in 2024. When a tenant seeks a rent reduction, FNC says incorporation of flex or bonus provisions can be a strategic compromise.