July, 1999

Georgia Farmland Rental Rates Dropped in 1999
 

Thanks to nearly 200 County Extension Agents and Farm Lenders - who responded to our bi-annual survey of land rental rates and land values in Georgia. As most USDA land data is state averages -- which will vary by locales -- this survey is intended to give us (and you) more localized information of land values.

We have a summary of land rental rates reported. The summary on land values is in progress, but will take several days to complete. So we're sharing part of the rental rates in this newsletter. The summary is on the next page.

To no ones surprise, current rental rates are lower than those reported in our last survey in 1997. This is shown below.
 

Farmland Rental Rates Reported in 1997 and 1999 Selected Land Types, Georgia
	1997	1999
Bare Cropland (per acre)	$39.00	$31.00
Irrigated Cropland (per acre)	108.00	89.00
Improved Pasture (per acre)	24.00	23.00
Unimproved Pasture (per acre)	17.00	16.00
Woodland Pasture (per acre)	14.00	13.00
Peanut Quota (per pound)	0.096	0.092

While we cannot be sure the same individuals responded to both surveys, we do know the majority are County Extension Agents, which gives some continuity to the results.
 

Average Farmland Rental Rates paid in 1999 per Acre, Reported in May 1999, Georgia ##
Statistical Reporting District	Cropland w/o Irrigation		Cropland w/ Irrigation		Pastures
	All	Cotton	All	Cotton	Improved	Unimproved	Woodland
(1) Northwest	$29.29	Id	$29.00	Id	$22.86	$14.71	Id
(2) North Central	27.93	Id**	47.40	Id	27.00	21.07	$15.60
(3) Northeast	22.14	Id	Id	Id	22.00	15.70	10.75
(4) West Central	26.78	29.17	77.81	$93.33	20.68	14.43	11.70
(5) Central	30.40	33.89**	83.46	90.52	22.42	15.90	12.60
(6) East Central	27.31	28.50	87.50	87.50	21.19	14.83	10.40
(7) Southwest	37.61	37.69**	111.45	109.11*	23.18	15.39	11.20
(8) South Central	40.22	40.00	95.65	103.57*	25.75	17.06	11.93
(9) Southeast	34.09	37.86	98.75	Id *	25.00	25.00	18.33
State	31.44	34.52	89.45	97.06	22.99	16.45	12.56

## Based on information reported by County Extension agents and Farm Lenders in Georgia

Id - Insufficient data.

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** District 2 reported $30 rent for corn; District 5 reported $25.15 rent for small grains;

District 7 reported $38.75 rent for peanut land.

* District 7 reported $110 rent for irrigated peanut land; District 9 reported $150 rent for irrigated onion land.

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The majority of respondents listed cotton as the crop most planted on rented land. In most instances land planted in cotton has a higher rental rate than the average rate for all crops. This is shown in the above table. However other crops were frequently listed in some districts and the average rent paid for land planted to these crops are shown in the footnote.

Looking at the remainder of the survey - the preliminary analysis indicates land values are higher than two years ago. While the farm economy is in the doldrums, it is influenced little by the aggregate U.S. economy, which continues to grow. This prompts an off-farm demand for farm lands - as an investment, as a place to live, or for industrial use.

The final report on farmland rental rates and land values will be available within a few days.
 

William Givan, Editor
Extension Economist

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