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THE LAND — JUNE 24/JULY 1, 2022
The CRP program faces challenging dynamics The Conservation Reserve Program has By comparison, the 2021 average CRP which is about 3.5 million acres below the maxia long history of promoting conservation rental rate in the 13 counties in the 13 mum level of 25.5 million acres for 2022 established practices and farmland stewardship in county south central Minnesota Farm in the last Farm Bill. Of the total CRP acres, the United States. The CRP program was Business Management region was $214 approximately 10.2 million acres are enrolled under established in December of 1985 as part per acre. Based on the 2021 FBM suma General CRP contract, 6.8 million acres in of the 1985 Farm Bill. mary, the average direct and overhead Continuous CRP, just under 3.9 million acres expenses — including property taxes — enrolled in the grassland program, and the balance The initial goal of CRP was to reduce to maintain CRP land was $92 per acre of the acres in CREP, wetlands and other special soil erosion on highly-erodible cropland in 2021, resulting in a net return of CRP initiatives. Forty-three percent of the and to help curb the over-production of FARM PROGRAMS $122 per acre. According to the 2021 Continuous CRP and CREP acres are enrolled in farm commodities. Secondary objectives FBM summary, the average cash rental the Clean Lakes, Estuaries and Rivers (CLEAR) of CRP included improving water quality, By Kent Thiesse rate non-farm landowners received from program. fostering wildlife habitat, and profarm operators in 2021 was about viding income support to farmers. There are nine states which have over or near 1 $225 per acre, before property More recently, the CRP program has million acres currently enrolled in CRP as of April, taxes and overhead expenses. Cash 2021 — mainly in the Upper Midwest and Plains been identified as a valuable tool through the Federal govregions. CRP acres ernment as a method to enrolled in these states promote “carbon sequesinclude Texas (2.3 milMinnesota Region 2021 Crop Returns Cash Rent Paid CRP Rental Rate tration” on working farmlion), Colorado (2 mil(FBM Regions) (FBM Average (2021 FBM (2021 USDA land. Currently, getting lion), South Dakota (1.8 Returns per Acre) Average Rent) Average Rate) farmland enrolled into the million), Kansas (1.7 Corn Soybeans Corn Soybeans CRP program is being million), Iowa (1.7 milchallenged by very posilion), Nebraska (1.5 milSouth Central $442 per acre $334 per acre $229 per acre $230 per acre $214 per acre tive economic returns lion), North Dakota (1.2 Southwest $463 per acre $292 per acre $228 per acre $225 per acre $196 per acre from crop production and million), Washington Southeast $401 per acre $269 per acre $220 per acre $225 per acre $202 per acre by tight grain supplies (just over 1 million worldwide. acres), and Minnesota West Central $374 per acre $219 per acre $186 per acre $184 per acre $169 per acre (just under 1 million Economic challenges State Average $395 per acre $237 per acre $202 per acre $184 per acre $146 per acre acres). CRP acreage in for the CRP program many of these states has Notes: The rising dilemma for dropped considerably in 1. The “Minnesota Regions” are the Minnesota State College and University Farm Business Management regions. the CRP program is that recent years. current farm economics 2. The “2021 Crop Returns” are the average “return over direct expenses” for corn and soybeans, before overhead expenses for tend to counteract enrollExpiring CRP acres machinery, etc., based on the 2021 FBM Annual Summary data. ment into the CRP proand re-enrollment of 3. The “Cash Rent Paid” is the average 2021 cash rent paid by farm operators for corn and soybeans, based on the 2021 FBM gram. Based on the 2021 CRP acres Annual Summary data. South Central College Given the current Farm Business challenge to get more 4. The “CRP rental Rate” is the average 2021 rental rent received by landowners, based on USDA CRP county average rental Management Summary acres enrolled into the data, before direct and overhead expenses, including property taxes. for over 350 crop farms in CRP program, one consouth central Minnesota, cern is the rather large the average return on cash rented farmland over rental rates for 2022 are likely to be 10-15 percent number of CRP contract acres expiring in the next direct expenses for seed, fertilizer, chemicals, fuel, higher than 2021 rental rates in south central couple of years. CRP contracts will expire on nearly repairs, etc. — including land rent, land rent — was Minnesota. 4 million acres on Sept. 30, plus an additional 2 mil$442 per acre for corn and $334 per acre for soylion acres in 2023. A General CRPP sign-up was As a result of the 2018 Farm Bill, expiring CRP beans. The average return above all direct and overheld earlier this year (CRP sign-up number 58), in acres in 2022 could only receive a maximum of 85 head expenses, including annual machinery and which USDA accepted early 20,000 CRP contracts percent of the average county cash rental rate, facility investments, was $335 per acre for corn and representing just shy of 2.1 million acres into the based on U.S. Department of Agriculture data, com$260 per acre for soybeans. CRP program starting Oct. 1. This represented pared to 100 percent of the average rate when the land was originally enrolled into the CRP program. approximately 87 percent of the CRP contracts and 90 percent of the acreage offered by landowners in In some cases, that may result in landowners actuthe latest CRP sign-up period. ally getting a lower CRP rental rate for 2023 than they received under the current contract. At the Only about half of the CRP acres expiring in same time, average land rental rates for 2023 in the 2022 were re-enrolled into the CRP program dursame county may be 20-25 percent higher than ing the 2022 sign-up. The balance of those acres, rental rates a few years ago. over 1.7 million acres, will likely be returned to REQUEST A FREE QUOTE! crop production in 2023. The data for the 2022 Refer to the accompanying table for additional ACT NOW TO RECEIVE CRP sign-up period indicated that 75 to 100 perCRP economic data and average rental rates. A $300 SPECIAL OFFER!* cent of the expiring CRP acreage was not offered (877) 381-3059 Current CRP enrollment for re-enrollment in 2022 in southern and western As of April 30, 2022, there were a total of just over *Offer value when purchased at retail. See THIESSE, pg. 17 Solar panels sold separately. 22 million acres enrolled in the CRP program,
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