With U.S. farm property values at record levels, renting acreage feels more financially viable for new growers and ranchers.

They generally lack capital or collateral to compete in the thin sector of the real estate market with more established ag producers and investors.

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Cost of cropland per acre 2024 (Change 2023, 2020)

U.S.

Cropland – $160 (3.2%, 15%)

Irrigated cropland – $245 (3.4%, 13.4%)

Pasture – $15.50 (3.3%, 19%)

Idaho

Cropland – $206 (4.6%, 20.5%)

Irrigated cropland – $276 (3.8%, 23%)

Pasture – $14 (7.7%, 17%)

Oregon

Cropland – $177 (-1.1%, 11%)

Irrigated cropland – $266 (2.7%, 21%)

Pasture – $11.50 (No change, -11.5%)

Washington

Cropland – $234 (-1.7%, 13%)

Irrigated cropland – $442 (0.5%, 13%)

Pasture – $10 (11%, 25%)

“Starting out by renting provides new or beginning farmers with crucial flexibility and reduces the risk of overleveraging,” said Danny Munch, an economist with the American Farm Bureau Federation.

“As you gain experience and confidence in your operations, renting offers the agility to either exit the market with minimal financial repercussions or expand your business as opportunities arise,” he said.

The ability to pivot or scale early can significantly impact long-term success, Munch added, in an email.

Rental complications

Despite the appeal of renting, the reality isn’t always so simple. Finding available cropland can be difficult.

U.S. farm rents also rose to record levels in 2024, according to the USDA, putting pressure on new ag producers in a period of low prices.

“Margins for many producers who rely on rented land are jeopardized by even minimal changes in rental rates,” Munch wrote, in an analysis for the Farm Bureau.

They also have reduced access to operating lines of credit needed to fund equipment and input purchases because they can’t use land as collateral.

Rental rates

The cost to rent U.S. ag land hit $160 per acre, up 3.2% over 2023 and a jump of 15% since 2020.

The Pacific Northwest had higher prices than the national average for renting cropland, driven by irrigated acreage, but lower costs for leasing pasture.

The average cropland rent decreased slightly in Oregon and Washington in 2024, but rose in Idaho.

Rental rates can vary widely based on location. For example, Oregon’s high for irrigated cropland was in fertile Hood River County, at $753 per acre, while the state’s low was $102 per acre in coastal Coos County.

Land already locked up

Dan Bigelow, an Oregon State University economist, said much of the ag land available to lease is already locked up.

According to a 2014 survey he worked on while with the USDA, 40% of rented farm and ranch acreage is tied up in landlord-tenant agreements that have lasted 10 years or more.

More than 80% has been rented through the same arrangement for at least four years.

And about ⅓ of rented land involves family members leasing to each other.

Irrigated cropland also is scarce with longer renewal periods because of the cost of water infrastructure.

“You sometimes have to piece together the land you want with multiple landlords to have a commercially viable operation,” Bigelow said.

A survey update will be conducted this year, with data available in 2025 or 2026, he said.

Land rented for renewable energy development should feature prominently in the update, Bigelow added.

Resources available

Bigelow said resources can help locate acreage to rent. That includes Oregon Farm Link by Friends of Family Farmers, which matches producers with retiring farmers and other landowners.

More land values coverage

USDA: Farm real estate value sets record

Value of Oregon farm real estate on the rise, triple nationwide increases

Farmland values up an average of 12% (2022)

Drought, markets, demand push most NW farmland rental rates higher (2021)

The USDA’s Transition Incentives Program encourages retiring producers to switch land from the Conservation Reserve Program to rental contracts with beginning farmers.

Tips for new producers

Munch said broad strategies for new farmers and ranchers include:

• Start small and build gradually.

• Capitalize on niche markets and direct-to-consumer sales that can offer better prices.

• Focus on efficiency and innovation to improve yields, making rented land more profitable.

• Build relationships with landowners that lead to favorable terms and stability.

• Stay informed about land values, rent prices, input costs and regulations and be prepared to adapt as conditions change.

Bigelow said rental agreements should be written out in formal contracts.