What is a typical cash rent for dryland wheat ground?

Dryland wheat ground typically rents $40–$150/acre depending on annual precipitation, soil type, and yield history. High-rainfall Palouse dryland ground (60–80 bu/acre wheat) may rent $100–$140/acre, while lower-rainfall transitional zone ground rents $50–$80/acre.

What is operator return above land in farm budgeting?

Operator return above land (also called return to operator and management) is the profit remaining after paying all costs including cash rent. It compensates the operator for management, equipment ownership, and business risk. A typical target is $30–$80/acre on grain crops. Setting this as a minimum before bidding rent protects you from winning ground that can't pay.

Should I include crop insurance in my non-rent operating costs?

Yes. Crop insurance is a real operating cost and should be included when calculating affordable rent. Typical premiums run $15–$40/acre depending on coverage level, crop, and county. Excluding insurance would overstate your available rent budget by that amount.

What is the rent coverage ratio?

The rent coverage ratio is gross revenue divided by cash rent. A ratio of 3.0x means gross revenue is 3 times the rent payment — a healthy buffer. Ratios below 2.5x indicate the rent consumes too much of revenue. Lenders often look for a coverage ratio of at least 2.5–3.0x for cash rent financing.

How does cash rent affect cost per bushel?

Rent cost per bushel = cash rent ÷ yield. At $300/acre rent and 200 bu/acre yield, rent adds $1.50/bu to your cost of production. At $400/acre rent and 150 bu/acre (a drought year), rent alone is $2.67/bu — which could push total cost well above market price.

What cap rate should I use for farmland valuation?

Cap rates for US cropland typically range 2.5–3.5%. Irrigated ground often trades at 2.5–3.0% cap rates (higher land values relative to rent). Midwest dryland corn ground is typically 3.0–3.5%. Lower cap rates reflect expectations of land appreciation in addition to rental income.

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Cash Rent & Land Affordability Calculator

Find the maximum cash rent per acre your crop economics can support, or evaluate whether a specific rent is feasible at your expected yield and price. Save up to 4 named scenarios — compare different fields, crops, or price assumptions side-by-side. Scenarios persist across visits without an account.

Max affordable rent · land value · feasibility analysis · sensitivity table

Save and compare up to 4 named scenarios side-by-side. Scenarios persist across visits — no account required.

Mode

Enter crop economics and costs to find the maximum cash rent you can afford per acre.

Crop & Revenue

Crop

Expected Yield

Irrigated corn: 220–280 bu/acre. Dryland avg ~180 bu/acre.

Expected Price

Use your contract price, nearby futures, or local cash price.

Target Operator Return ($/acre)

Minimum profit you want to earn above all costs before paying rent. Protects your margin. Typical: $30–$80/acre.

Operating Costs (excl. Cash Rent)

All production costs except cash rent: seed, fertilizer, chemicals, fuel, irrigation, drying, trucking, insurance, machinery, overhead.

Farm Size (optional)

Area

Used to calculate farm-total rent payments and revenue.

Scenario Name (optional)

Enter your crop economics and operating costs, then press Calculate.

Disclaimer — Cash rent and land value estimates are for planning purposes only. Use the Crop Break-Even Calculator to verify the land is profitable at the rent you can afford. Scenario comparisons are saved in your browser's local storage and are not shared or synced across devices. Actual yields, prices, and costs will vary.

Frequently Asked Questions

Maximum cash rent = gross revenue per acre − non-rent operating costs − target operator return. For example: 200 bu/acre × $4.50/bu = $900 gross revenue − $550 non-rent costs − $50 target return = $300/acre maximum affordable rent.

A common rule of thumb is cash rent should be 25–33% of expected gross revenue per acre. If gross revenue is $900/acre, a sustainable rent range is $225–$300/acre. Rents above 40% of gross revenue typically leave little margin for yield or price risk.

Farmland value = annual cash rent ÷ capitalization rate. At a 3% cap rate, land paying $300/acre rent is worth $300 ÷ 0.03 = $10,000/acre. Cap rates for US farmland typically range 2.5–3.5%, with irrigated ground often at 2.5–3.0%.

Irrigated ground typically rents for $200–$600/acre across major US production regions depending on soil quality, water rights, crop history, and proximity to markets. High-productivity pivot-irrigated ground in Grant or Franklin County, Washington often rents $400–$550/acre for corn or potatoes.

Operator return above land is the profit remaining after paying all costs including rent. It compensates the farmer for management, equipment, and risk. A typical target is $30–$80/acre on grain crops. Setting this as a minimum before bidding rent protects you from winning ground that doesn't pencil.

The rent coverage ratio is gross revenue divided by cash rent. A ratio of 3.0x means gross revenue is 3 times the rent — a healthy buffer. Ratios below 2.5x indicate rent is consuming too much of revenue. Agricultural lenders typically look for a coverage ratio of at least 2.5–3.0x.

Dryland wheat ground typically rents $40–$150/acre depending on region. High-rainfall Palouse ground (60–80 bu/acre wheat) may rent $100–$140/acre, while lower-rainfall transitional zone ground rents $50–$80/acre depending on soil type and yield history.

Rent cost per bushel = cash rent ÷ yield. At $300/acre rent and 200 bu/acre yield, rent adds $1.50/bu to your cost of production. At $400/acre rent and a drought year with only 150 bu/acre, rent alone is $2.67/bu — which can push total cost above market price.

Cap rates for US cropland typically range 2.5–3.5%. Irrigated ground often trades at 2.5–3.0% (reflecting higher land values). Midwest dryland corn ground is typically 3.0–3.5%. A 3.0% cap rate is a useful midpoint for general estimates.

Yes. Crop insurance premiums are a real operating cost, typically $15–$40/acre depending on coverage level and crop. Excluding insurance would overstate your available rent budget by that amount and understate your true break-even risk.

Cash rent is a fixed dollar amount paid per acre regardless of yield or price. Flex rent has a base payment plus a bonus tied to actual yield, price, or revenue — sharing upside with the landlord. Cash rent offers certainty; flex rent reduces downside risk but shares profit in good years.

The calculator supports corn ($/bu), soybeans ($/bu), hard and soft wheat ($/bu), canola ($/bu or ¢/lb), dry edible beans ($/cwt), and a custom crop with any price unit.