ISU Extension and Outreach
ISU Extension and Outreach
ISU Extension and Outreach reliable information about agriculture, 4H programs, food and nutrition, and family sciences. ISU Extension and Outreach has an office in Muscatine.

Muscatine Living

By Alejandro Plastina–Iowa State University Extension and Outreach

Cash rental rates have increased in most Iowa counties, a recent survey determined.

AMES, Iowa – Stronger commodity prices and farmland values are leading to higher cash rents across most of the state. The most recent annual survey of cash rental rates for Iowa farmland showed that rates increased an average of 10.3% to $256 per acre.

This is the third consecutive and largest uptick in cash rents since 2013, when rents peaked at $270 per acre – a level 5.5% higher in nominal terms than this year. In comparison, nominal corn and soybean prices received by farmers in Iowa declined by 16 and 11%, respectively, since mid-2013.

“Higher cash rents means lower margins on rented land, but current corn and soybean prices should support positive margins for most tenants in 2022,” said Alejandro Plastina, associate professor in economics and extension economist with Iowa State University Extension and Outreach. “Somewhat more concerning is the picture for 2023, with expected higher input costs across the board and stagnant to declining crop prices.”

The survey was based on 1,401 responses from farmers, landowners, professional farm managers and realtors, agricultural lenders, and others with knowledge of cash rents for farmland.

They supplied information based on their best judgments about typical cash rental rates for high, medium, and low quality cropland in their counties, as well as for land devoted to production of hay, oat, and pasture

All land qualities have seen their average cash rents increase by similar percentages. High quality land experienced an 11.2% increase, from $267 per acre in 2021 to $297.

Medium quality land experienced a 9.4% increase, from $233 per acre in 2021 to $255. Low quality land experienced a 10.2% increase, from $197 per acre in 2021 to $217.

Due to reporting deadlines, survey data typically lags the current year. The typical cash rents reported in the survey reflect the economic conditions during the months of July and August of the previous year through February of the current year. The survey has historically been implemented at the same time each year to avoid interfering with cash rent negotiations or re-negotiations.

Survey information can serve as a reference point for negotiating an appropriate rental rate for next year, said Plastina. However, rents for individual farms should be based on productivity, ease of farming, fertility, drainage, local price patterns, longevity of the lease, conservation practices, and possible services performed by the tenant.

“The cash rent survey results are based on opinions and should not be used to set prices without proper discussion of the relevant circumstances around an individual farm,” said Plastina.

Other resources available for estimating cash rents include the AgDM Information Files C2-20, Computing a Cropland Cash Rental Rate; C2-23, Computing a Pasture Rental Rate; and C2-21, Flexible Farm Lease Agreements. All of these fact sheets, and more, are on the Ag Decision Maker Leasing page and include decision tools (electronic spreadsheets) to help analyze individual leasing situations.

Latest News

Community Foundation of Greater Muscatine Announces $500,000 Grant

The Community Foundation of Greater Muscatine announces a multi-year grant in the amount of $500,000 has been awarded from...

More Articles Like This

Muscatine Today

MTS- Brandon is here to talk about Fat Cat

Today on the show Scott Schultz from Impact Fitness and Nutrition is here to talk about more healthy fitness tips. Then if you are looking to get your car cleaned up from the winter listen to today's show to learn about a business in town that can help you with that and more..... Thank you to our show sponsors: Harpers Cycling and Fitness, Beckey Insurance, Muscatine Power and Water, RIVO Plumbing and Heating, ImpactLife Blood Center, Lutheran Living, Toyota of Muscatine, Impact Fitness and Nutrition, Sun Tan City Muscatine, Real Estate Resource Associates, UnityPoint Health Trinity Muscatine and Hy-Vee Muscatine #muscatinetodayshow #goodmorningmuscatine #KindnessIsFree

DMSN Broadcasts

Manta Rays Swim

Join us as the Muskie Boys Basketball team hosts the North Scott Lancers! Watch Your Way: DiscoverMuscatine.com Discover Muscatine Facebook Discover Muscatine YouTube DiscoverMuskie Twitter Muscatine Power and Water Cable Channel 3 Brought to you by Muscatine Power and Water, Muscatine Lawn and Power, Hy-Vee, Bayer of Muscatine, First National Bank of Muscatine, Affordable Metal Manufacturing, Eastern Iowa Power Washers, Arty’s Ice Cream and Grill, Rivo Plumbing and Heating, Riots and Rebelle’s Salon, Bickford Senior Living, Let’s Eat, Muscatine Community Y and the Youth Sports Foundation. #DMSN #MuskieSports #Muscatine #MuskieSchools #basketball #prephoops #prepbasketball

Talk of the Town

Chasing the American Dream!

I've always been an idea guy. I love sitting around a table, brainstorming with a group, and talking things through. This includes people considering...

Muscatine Area News

Community Foundation of Greater Muscatine Announces $500,000 Grant

The Community Foundation of Greater Muscatine announces a multi-year grant in the amount of $500,000 has been awarded from the Mary Jo and Richard...