Extension Communications
3614 Administrative Services Building
Ames, Iowa 50011-3614
(515) 294-9915
5/25/99
Contacts:
William Edwards, Extension Economics, (515)
294-6161,wedwards@iastate.edu
Elaine Edwards, Extension Communications Specialist,(515)
294-5168, eedwards@iastate.edu
Cash Rental Rates Trend Downward
AMES, Iowa -- For the first time in over a decade, cash rental rates in Iowa appear to be trending downward. Results of an Iowa State University survey show an estimated average rental rate for the state of $117 per acre in 1999, compared to $119 in 1998. Most, though not all, counties showed modest declines in estimated rents, especially for higher quality land.
"This decline is not surprising in view of persistent low corn and soybean prices and declining USDA transition payments. However, strong competition for rented land has kept rates at what are still historically high levels," said William Edwards, ISU Extension economist.
Nearly 1,000 farm tenants, land owners, real estate agents, farm managers and lenders responded to this year's survey. Data was collected for high, medium and low quality cropland, as well as for land used for production of oats, hay and pasture. Pasture and hay land rents showed little change from past years.
Average rents per bushel of expected corn yield also were computed. These rates ranged from about $0.90 per bushel in western and central Iowa to just over $1 per bushel in east central and southeast Iowa. Stronger grain prices and the large number of acres devoted to seed production tended to support rental rates in the latter areas.
The full summary of the survey is found in ISU Extension publication FM-1851, "Cash Rental Rates for Iowa," available at county extension offices in Iowa, from the ISU Extension Distribution Center at (515) 294-5247, or on the World Wide Web from the ISU Extension home page at www.extension.iastate.edu/.
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