Farmland Leasing

Kelvin Leibold, Field Specialist-Farm Management, Central Area

Problem Statement:

The change in farmland ownership and farmland use has been dramatic.  The percent of land owned by people over age 75 has doubled since 1982.  Today almost one-half of the land is owned by people over age 65.  Almost one out of every five acres in Iowa is owned by a non-Iowa resident.  The demand for information on land values and farmland issues is continually increasing as the number of owner operators declines.

Programmatic Response:

I held nine seminars on land values and leasing issues in Central Iowa.  Information was provided on land values, factors impacting land values, trends in land ownership, farmland leasing trends and emerging issues, rental rates, calculating rental rates, impact of risk management tools, and a summary of ISU Extension resources.  I also demonstrated the use of five spreadsheets to assist the participants in making better leasing decisions.  Participants are provided a hundred page reference guide to provide more in-depth information on key issues.

Impact/Outcome:

One hundred fifty-two people attended the seminars.  Comments from participants included:  I have a better understanding of what it costs to raise corn.  I didnt know there were so many different ways to calculate rent; I didnt have any idea of what the costs were to put in a crop; Im glad to know the rent that I am getting is reasonable; I wasnt aware that there was so much information on the WEB; and I appreciate you making the spreadsheets available on the web. One participant stated I plan to download the spreadsheets and use them right away.  Another participant called, My brother and I have been reviewing together the materials from the program. This program has given me the information I needed to get through some tough issues. I think my brother finally realizes that we can make more if he stops farming.  These programs generate dozens of follow up calls where I go into more depth on an individual basis to help facilitate the participants make decisions involving thousands of dollars.

April 7, 2007
120 - Farm and Business Management
 

Page last updated: April 11, 2007
Page maintained by Linda Schultz, lschultz@iastate.edu