Rising land values don't mean ag sector improvement: Plastina

October 20, 2017

Alejandro PlastinaAlejandro Plastina, assistant professor, was interviewed for an article by George Silva in the MSU Extension newsletter about how cash rates should not be the sole factor in cropland rental decisions.

"Economist Alejandro Plastina feels that understanding of the true financial situation of the tenant and the local industry is vital in 2018 cash rent discussions. Because rental rates depend on a multitude of factors, landowners should try to stay abreast of the farm economy and be willing to negotiate with tenants.

'Although we’re seeing a decline in cash rents, land values in Iowa are holding steady or increasing,” said Plastina. “That can be mistakenly interpreted as an improvement in the agriculture sector, but that’s not the case at all.'"

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