Unveiling the Secrets: The Thriving World of Ohio Farmland

Ohio's farmland market is ablaze with excitement as key factors converge to create a landscape of increasing land values. The stage is set for a captivating journey filled with high crop prices, government support, and enticing interest rates. While minor fluctuations in crop prices and rising production costs may temper profit margins in the near future, the forecast remains optimistic for farmland values, promising a journey of growth throughout this year and beyond. As we explore the Ohio farmland market, let's delve into the intriguing data and insightful surveys that shed light on this fascinating landscape.

The United States Department of Agriculture's National Ag Statistics Service (NASS) August Land Values 2021 Summary reveals a noteworthy surge in Ohio's farm real estate, with a remarkable 3.9% increase from 2020, reaching an average value of $6,600 per acre in 2021. The value of Ohio cropland, encompassing bare cropland, also witnessed an impressive rise of 5.3% from the previous year, averaging $6,800 per acre. Pastureland in Ohio joined the upward trend, experiencing a 2.1% increase to reach $3,440 per acre in 2021. As the market gains momentum, the average cash rents in Ohio climbed by 2.6% in 2021, settling at $160 per acre.

To gain further insights, the Ohio State University Extension conducted the Ohio Cropland Values and Cash Rents Survey. This comprehensive study, conducted between January and April 2021, sought the opinions of various industry professionals, including rural appraisers, agricultural lenders, farm managers, and more. Their expertise contributed to an in-depth analysis of Ohio's cropland values and rental rates. Across the state, the varying production capabilities of Ohio's cropland translate into a diverse range of values and rents. Factors such as soil quality, fertility, drainage, and irrigation capacity shape land productivity, crop returns, and the volatility of those returns, ultimately influencing market dynamics.

Beyond these intrinsic factors, additional elements impact land values and rental rates. Considerations such as field size, shape, and accessibility, market access, local price dynamics, field characteristics, buildings and storage facilities, previous cultivation practices, weed populations, USDA Program Yields, population density, and competition for cropland all play a part. Meanwhile, rental rates are also influenced by lease conditions and services provided by the operator.

According to the Western Ohio Cropland Values and Cash Rents Survey, conducted by the Ohio State University Extension, western Ohio is poised for further growth. Cropland values in this region are anticipated to rise by 3.8% to 5.3% in 2021, depending on the specific location and land class. Similarly, cash rents are projected to increase between 3.6% and 3.9%, once again varying based on the region and land class.

​While these surveys offer valuable insights, recent farmland sales suggest that the actual increase in land values may surpass the projected figures. With soaring crop prices and optimistic yield predictions, Ohio's farmland market remains robust, invigorated by the collective strength of its key drivers.