Cash Rent Calculator
How cash rent is calculated
Cash rent is a competitive market number — comparable sales, USDA NASS county data, soil productivity (CSR2, PI, and similar indexes) all factor into what landlords ask. But the tenant has a ceiling too.
From your side of the lease: gross revenue per acre = expected yield × price per bushel. Subtract variable costs (seed, fertilizer, chemicals, crop insurance, fuel, labor) and fixed costs excluding land (machinery depreciation, overhead). Whatever is left is the maximum you can pay for land and still break even.
Know your max before you negotiate. Bidding above your ceiling works until price or yield disappoints — then you are farming for the landlord.
Cash rent vs. crop share
Cash rent is fixed and predictable. You know the land cost per acre before you plant. You bear all price and yield risk. When corn is $6, you keep the upside. When corn is $3.50, you eat the loss on every bushel.
Crop share splits the crop — commonly 25–33% to the landlord. Risk is shared. Income varies for both parties. Crop share makes more sense when the landlord wants exposure to upside, or when the tenant lacks capital for a large cash rent payment.
Neither is universally better. It depends on your risk tolerance, the landlord’s preferences, and whether you need predictable land cost for lender covenants.
The break-even math
The equation is simple but worth writing down:
- Gross revenue = yield × price
- Non-land costs = variable + fixed (machinery, overhead — not rent)
- Profit = gross revenue − non-land costs − cash rent
Breakeven price at a given rent: (non-land costs + rent) ÷ yield
Breakeven yield at a given rent: (non-land costs + rent) ÷ price
Use Mode 2 in the calculator above to evaluate a specific rent offer. The sensitivity table shows profit per acre across yield and price scenarios — that is what farmers actually want when a landlord pushes for another $25 per acre.
Pair your breakeven with the crop breakeven calculator for a full cost picture including land.
USDA NASS cash rent data
USDA publishes average cash rent by county annually through NASS at nass.usda.gov. That is your market benchmark — what neighbors are paying on average.
The calculator tells you your ceiling based on your yield and cost assumptions. NASS tells you the market. If your ceiling is below the county average, you need higher yields, higher prices, or lower costs to make the lease work — or you need to walk away.
Buying vs. leasing
If you are deciding whether to buy the ground instead of renting it, run the purchase through our farm loan calculator and compare the annual principal-and-interest payment to your cash rent bid. Ownership adds property taxes, maintenance, and tile repairs that rent does not cover — but it builds equity.
For FSA financing options on a land purchase, see our FSA loan types guide.
Cash Rent Calculator FAQ
What is a fair cash rent per acre?
Fair depends on soil, county averages, and your operation. Use NASS county data as a benchmark and this calculator for your personal ceiling.
How is cash rent calculated?
Maximum supportable rent = (yield × price) − variable costs − fixed costs excluding land.
What is the difference between cash rent and crop share?
Cash rent is fixed per acre; crop share splits the crop and shares risk.
Can I use this calculator for pasture ground?
Designed for cropland. For pasture, see the pasture lease calculator.
How do I negotiate cash rent with a landlord?
Bring your max supportable rent, yield history, and county averages. Sustainable numbers beat emotional bidding.