Cash rents reach record high

   Average cash rents in Iowa are the highest on record, according to the Cash Rental Rates for Iowa 2023 Survey conducted by Iowa State University Extension and Outreach.

The survey shows an increase of 9 percent in 2023, for a state average of $279 per acre.

   The new record is 3.3 percent higher than the previous record set in 2013, when rent was $270 per acre. The increase in rent since 2013 compares to a 2.8 percent increase in the non-inflation adjusted price of corn, and a 4.4 percent decrease in the price of soybeans.

   Results of the survey are summarized in the May edition of Ag Decision Maker, in an article written by Alejandro Plastina, associate professor in economics and extension economist with ISU Extension and Outreach.

   The survey is based on 1,306 usable responses about typical cash rental rates in Iowa counties for land producing corn and soybeans, hay, oats and pasture. Of the responses, 42 percent came from farmers, 37 percent from landowners, 9 percent from professional farm managers and realtors, 7 percent from agricultural lenders, and 5 percent from other professions and respondents who chose not to report their status.

   There was considerable variability across counties in year-to-year changes, as is typical of survey data, but 91 out of the 99 Iowa counties experienced increases in average rents for corn and soybeans, including Jones County. Only Des Moines, Jefferson, Lucas, Muscatine, Van Buren, Wapello, Warren and Woodbury counties saw declines in their overall average cash rents. The complete 2023 summary by county, along with surveys from previous years, can be accessed on Ag Decision Maker.

   Plastina says that survey information can serve as a reference point for negotiating an appropriate rental rate for next year. However, he reminds Iowans that rents for individual farms should be based on productivity, ease of farming, fertility, drainage, local price patterns, longevity of the lease, conservation practices and other factors.

   In July and August, ISU Extension and Outreach will hold Farmland Leasing and Management Workshops, with additional opportunities to learn more on leasing trends and topics impacting farmland owners and tenants.