A recent update from University of Iowa Extension indicated that, “The cash rental rate information presented in this publication is from a survey of farmers, landowners, agricultural lenders, and professional farm managers. 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, oats, and pasture. Information about rents for individual farms was not collected. The rental rates summarized in this publication do not include the value of any buildings or storage structures, manure application contracts, or seed production contracts.”
Graph from, “Cash Rental Rates for Iowa, 2017 Survey.” Iowa State University Extension (May 2017).
The Iowa State update added that, “This summary can be used as a referencepoint for determining an appropriate cash rental rate for a particular farm. The following may justify a higher or lower than average rent in specific cases:
- Small size or unusual shape of fields
- Terraces or creeks that affect the time it takes to plant and harvest crops
- Difficult or restricted access to fields
- High or low fertility levels or pH index
- Existence of contracts for growing seed or specialty grains, or manure application
- Above-average local grain prices due to proximity to biofuel plants or feed mills
- USDA program variables, such as crop bases and assigned yields
- Longevity of the lease
- Other services performed by the tenant.”
