Darnell Smith, P & S, Economics
Over the past two decades, the percentage of Iowa's agricultural land that is leased on a cash basis has roughly doubled, moving from 21 to 40%. Because of this rapid change in tenure, it is very important for landowners, renters, and lenders to have accurate estimates of current cash rental rates in their local area by land quality.
To obtain accurate estimates of cash rental rates for Iowa's agricultural land by quality and region, calculate summary averages by county and land quality, and disperse that information to stakeholders by publication and through the Extension web site.
A survey form was prepared and mailed out to interested farmers, landowners, agricultural lenders, real estate brokers, and professional farm managers around the state of Iowa. Close to 1,000 responses were obtained and average cash rental rates were calculated for high, medium, and low quality cropland by county, as well as land devoted to hay production, oats, pasture, and cornstalk grazing. A summary publication was prepared and results are posted on the Extension web site.
The overall impact of this activity is that, by providing accurate information on cash rental rates for agricultural land, all stakeholders involved will be able to make more informed decisions leading to increased business efficiency. Even with the results posted on the Extension web site, roughly 700 respondents indicated they would like a hardcopy mailed to them. This is a good indication of the public interest in having accurate information about current cash rental rates for Iowa's agricultural land.
101 -- Strategic and Organizational Management Development for Iowa's Farm Businesses
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July 8, 2006
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