Iowa farmland cash rent rates have declined for the 4th year in a row according to the newest Iowa State University report which was a result of 1448 statewide survey’s. Farmland rents have fallen 4.8% in the past year and as measured for the 2017 crop year. This represents a drop of 18.9% since the beginning of the decline in 2013. The average farmland cash rent in 2016 was $230 while 2017 came in at an average of $219 per acre.
Farmland rents continue their trend of parting relationship with commodity prices. Because of Iowa’s farm tenancy laws and the length of growing season cash rents are often out of step with a farms income producing ability but today while corn prices have fallen 57%, rental rates have only fallen 18.9% in the same period.
This survey is an average of all survey responses and while it can give a person a good understanding of market conditions it does not appraise the rental capacity of any particular farm. Each and every farm is unique for many different reasons and some farms in Iowa will attract higher rental rates and some farms will attract lower rental rates. Certain factors such as field shape and size, irrigation, location and proximity, fertility and soil conditions along with are livestock populations will have an effect on the rental rate of any given farm.
If you are researching farmland rental rates in Iowa you can find specific and detailed information on a county by county basis at www.DollarsAndDirt.com
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Read the full report on Iowa Farmland Rental Rates for 2017