Millions of acres of U.S. farmland that grow corn, soybean, and wheat are rented, and land rent is the biggest cost of growing these crops. With rising crop prices, rents doubled during the past six years. Today, with falling crop prices, rents are falling, but they are still high.

1. Explain how the price of grain affects the rent in the market for farmland.

2. Why might rents remain high when grain prices fall?