By Scout Nelson
Surveys indicate that about 50 percent of Nebraska’s cropland is leased, with cash rent and crop share being the most common methods. Farmers and landowners often debate which lease type is more profitable.
A recent study by Anastasia Meyer from the University of Nebraska’s Department of Agricultural Economics analyzed the economics of cash rent versus crop share leases. The study used a dryland farm in Gage County under a corn–soybean rotation with no-till practices. Data from 2012 to 2025 were analyzed, comparing a 60/40 crop share lease—where the landowner receives 40 percent of receipts and shares in expenses—with cash rent.
Commodity prices, yields, and cash rent data were sourced from the USDA National Agricultural Statistics Service, while input costs came from University of Nebraska–Lincoln enterprise budgets. Government payments and crop insurance were not included.
The study found crop share leases outperformed cash rent in 12 of the 14 years analyzed. Over the period, cumulative landowner returns averaged $1,952 per acre for crop share, compared with $1,545 per acre for cash rent. Meyer commented, “These results highlight the variability between leasing structures and suggest that crop share has the potential to deliver stronger long-term returns.”
However, Meyer cautioned that results may vary depending on local conditions, risk preferences, and the exclusion of government programs or crop insurance. County-wide averages were used, and each farm may have unique circumstances.
The University of Nebraska’s Center for Agricultural Profitability is also conducting a survey of crop share leases. Responses will help provide insights into cost-sharing practices and regional trends in Nebraska. Participants’ responses will remain anonymous.
This research gives farmers and landowners a clearer understanding of the potential benefits of crop share leases compared with cash rent, helping guide decisions for long-term farm profitability.
Photo Credit: gettyimages-mvburling
Categories: Nebraska, Crops