Average cropland and pastureland cash rental rates can be helpful to both agricultural producers and landowners in planning leasing arrangements or making production decisions.

Figure 1. State-level farmland cash rent by year.

Knowledge of farmland cash rental rates can be useful for updating leasing arrangements and for budgeting costs of production. Annual farmland cash rental rates were released by the USDA’s National Agricultural Statistics Service on August 25, 2023. Rates are given for irrigated cropland, non-irrigated cropland, and pastureland for each county. Here are some key highlights:

• Cash rental rates increased slightly in Alabama from 2022.
  • Cropland averaged $70, up $1 from 2022.
  • Pastureland averaged $24, up $0.50 from 2022.
• The statewide rate for irrigated cropland was $137 per acre, compared to $66.50 for non-irrigated cropland.
• Cash rental rates slightly increased in neighboring states, following the trend of the past 5 years.
• Cash rent varies greatly by county within Alabama, with highest rates for the following:
  • Irrigated cropland: Henry County at $185/acre
  • Non-irrigated cropland: Limestone County at$123/acre
  • Pastureland: Marshall County at $39.50/acre

Statewide Farmland Cash Rent

Figure 2. Cash rental rate maps for irrigated cropland, non-irrigated cropland, and
pastureland.

Statewide cash rental values have gradually increased in Alabama over the past decade, similar to its neighboring states (figure 1). Cropland averaged $70 per acre in Alabama, up only 1% from 2022. Irrigated cropland had a rental rate of $137 per acre, an increase of $8 from 2022, while non-irrigated cropland received a rate of $66.50 per acre, displaying no change from 2022. Pastureland had a rental rate of $24 per acre, with little change over the past 5 years. Over the past decade, both cropland and pastureland rental values have had modest increases in all states across the region. Current cropland rates in Alabama lag behind the other states, with Georgia leading the way at $149 per acre. For pastureland, Alabama is only behind Georgia, which leads the region with a rental rate of $31 per acre.

Cash Rent by County

Figure 3. State-level land values by year.

However, rental rates vary greatly within Alabama. The highest-value irrigated cropland is in Henry County with a rate of $185 per acre, with the lowest rate in Dallas County at $104 per acre. For non-irrigated cropland, Lawrence, Limestone, and Colbert Counties all had rental rates over $100. The lowest rate for non-irrigated cropland was St. Clair County ($13.50 per acre). Pastureland received the highest rate in Houston County ($48 per acre), and the lowest rate in Clay County ($10 per acre). The Wiregrass and Coastal Plains and Gulf Coast regions showed significantly higher rates than most of the other regions, especially for pastureland (figure 2).

Table 1 shows by county how cash rental values have changed from 2022. Compared to 2022, cash rent for irrigated cropland increased in all but five counties, while cash rent for non-irrigated cropland increased in 36 of the state’s 67 counties. Results were mixed for pastureland, with 36 counties seeing declines in cash rent from 2022.

These changes in cash rental values are most likely due to the slight increase in land values overall across the state of Alabama. From 2022, there was a 2 percent increase in cropland, a 3 percent increase in pastureland values, and a 3 percent increase in agricultural land including buildings in general. As seen in figure 2, land values have increased over the past five years, with the steepest increases happening since 2021 (figure 3).

Conclusion

Cash rental rates in 2023 have shown to be fairly stable over the past year with only slight increases for cropland and pastureland. While the rates vary greatly across different counties in Alabama and in different states altogether, their trends all move in a similar direction. Alabama has experienced a slow, yet steady increase in cash rental rates, and it will be interesting to see if this trend ceases in years to come.

Average cropland and pastureland cash rental rates can be helpful to both agricultural producers and landowners when planning leasing arrangements or making production decisions. However, when using this information, please keep in mind that attributes of plots of land differ within a county, and the values presented in this document are simply averages. Careful thought should be used when making any decisions regarding the rental value of land.