Cash Rental Rates for Iowa

[Pages:12]Cash Rental Rates for Iowa 2021 Survey

Ag Decision Maker

File C2-10

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. Oats, hay, and pasture rents are only available at the district level.

The cooperation and assistance of the landowners, farmers, and agribusiness people who responded to this survey are greatly appreciated. The distribution of the 1,363 usable responses was 41% from farm operators, 33% from landowners, 11% from professional farm managers and realtors, 9% from agricultural lenders, and 6% from other professions and respondents who chose not to report their status. Respondents indicated being familiar with 1.5 million cash rented acres across the state.

Additional survey information about cash rental rates by county is available from the USDA National Agricultural Statistics Service (NASS), nass.Statistics_ by_State/Iowa/Publications/County_Estimates/index.php.

Figure 1. Comparison of Average Cash Rent by Crop Reporting District, 2020-2021

Determining Cash Rents

This summary can be used as a reference point 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

Resources for further details on rental agreements can be found on the Ag Decision Maker Leasing page, located under Whole Farm, Leasing, extension.iastate.edu/ agdm/wdleasing.html.

? Computing a Cropland Cash Rental Rate,

? Computing a Pasture Rental Rate, extension.iastate.edu/agdm/wholefarm/pdf/ c2-23.pdf

? Flexible Farm Lease Agreements,

Definitions

Number of responses ? number of individuals who reported typical rental rates for each county.

2016-2020 average yields ? based on available farm level data collected by USDA National Agricultural Statistics Service (NASS) for each county.

Average row crop CSR2 index ? average corn suitability rating 2 (CSR2) for the highest rated soils in each county, up to 110% of the number of acres planted to corn and soybeans in that county. Note: CSR2 values, updated in 2020, are based on the USDA NRCS Web Soil Survey, .

High, medium, and low quality third land ? quality of land planted to corn and soybeans, using typical corn yields collected by USDA NASS as a reference for land quality within the county.

FM 1851 Revised May 2021

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Cash Rental Rates for Iowa - 2021 Survey

Typical corn yields ? average yields for the high third, medium third, and low third productivity farms in each county, special tabulation by USDA NASS, 2015-2019.

Average rents per 5-year average yield or CSR2 ? overall average rent for corn and soybean land in each county, divided by the five-year average corn yield, the five-year average soybean yield, and the average row crop CSR2 index value for each county.

Improved permanent pasture ? pasture that contains both grasses and legumes and is regularly fertilized.

Unimproved pasture ? pasture with mainly bluegrass that receives little fertilizer or renovation.

Pasture, $/Animal Unit Month (AUM) ? rent charged per animal unit month. One AUM is equal to one beef cow or its equivalent grazing for one month.

Cornstalk grazing ? includes grazing of cornstalks in fall or winter, but not mechanical harvesting.

Hunting rights ? rent charged to allow hunting on land, per year.

2017-2021 Overall Average of Typical Cash Rents for Corn and Soybean Acres by Iowa Crop Reporting District ($ per tillable acre)

2017 2018 2019 2020 2021

District 1 District 2 District 3 District 4 District 5 District 6 District 7 District 8 District 9

$234 218 241 231 228 231 206 180 204

$237 225 244 236 237 235 207 174 203

$231 219 237 235 231 229 207 174 210

$239 225 248 237 232 232 203 176 205

$242 238 253 247 245 243 214 188 221

State

$219 $222 $219 $222 $232

Prepared by Alejandro Plastina, extension economist; Ann Johanns, extension program specialist; Ayah Gleisner and Avery Qualman, undergraduate research assistants

Farm Management Field Specialists extension.iastate.edu/ag/farm-management

extension.iastate.edu/agdm store.extension.iastate.edu

In accordance with Federal law and U.S. Department of Agriculture (USDA) civil rights regulations and policies, this institution is prohibited from discriminating on the basis of race, color, national origin, sex, age, disability, and reprisal or retaliation for prior civil rights activity. (Not all prohibited bases apply to all programs.) Program information may be made available in languages other than English. Persons with disabilities who require alternative means of communication for program information (e.g., Braille, large print, audiotape, and American Sign Language) should contact the responsible State or local Agency that administers the program or USDA's TARGET Center at 202-720-2600 (voice and TTY) or contact USDA through the Federal Relay Service at 800-877-8339. To file a program discrimination complaint, a complainant should complete a Form AD-3027, USDA Program Discrimination Complaint Form, which can be obtained online at , from any USDA office, by calling 866-632-9992, or by writing a letter addressed to USDA. The letter must contain the complainant's name, address, telephone number, and a written description of the alleged discriminatory action in sufficient detail to inform the Assistant Secretary for Civil Rights (ASCR) about the nature and date of an alleged civil rights violation. The completed AD-3027 form or letter must be submitted to USDA by: (1) Mail: U.S. Department of Agriculture Office of the Assistant Secretary for Civil Rights, 1400 Independence Avenue, SW Washington, D.C. 20250-9410; or (2) Fax: 833-256-1665 or 202-690-7442; or (3) Email: program.intake@. This institution is an equal opportunity provider. For the full non-discrimination statement or accommodation inquiries, go to extension.iastate.edu/diversity/ext.

Cash Rental Rates for Iowa ? 2021 Survey

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2021 CASH RENTAL RATE SURVEY FOR CROP REPORTING DISTRICT 1

County

Number of responses1/

2016-2020 average corn yield 2016-2020 average soybean yield

Average row crop CSR2 index

District 1 Buena Average Vista Cherokee Clay Dickinson Emmet

197

5

17

16

11

10

Lyon 17

O'Brien Osceola Palo Alto Plymouth Pocahontas Sioux

17

12

18

33

21

20

195

192

206

182

180

188

201

206

193

186

208

191

208

58

56

62

54

54

55

61

61

56

55

62

56

64

85

86

90

86

87

81

80

94

86

82

82

82

88

Typical Cash Rent for Corn and Soybeans, $ per tillable acre

Overall average

$242 $243 $258 $217 $207 $203 $257 $268 $243 $238 $250

High quality third Average response Range of responses

Medium quality third Average response Range of responses

Low quality third Average response Range of responses

$277 $269 $291 $261 $238 $228 $292 $307 $296 $265 $291 225-300 260-350 225-280 170-300 175-280 240-335 250-350 250-325 230-300 200-370

$242 $246 $256 $212 $211 $206 $262 $265 $239 $237 $245 215-290 230-280 180-250 150-275 160-250 215-300 230-300 200-300 200-270 180-300

$207 $215 $227 $178 $173 $176 $217 $231 $195 $213 $215 200-230 225-230 150-210 125-225 140-235 180-250 190-275 170-225 180-250 150-280

$240 $275

$267 $317 220-325 250-390

$239 $280 200-285 220-350

$215 $229 190-240 185-275

Typical Corn Yield, bushels per acre, USDA NASS Special Tabulation 2015-2019

High third

215

210

232

210

194

208

217

224

214

207

225

Middle third

196

193

210

185

181

188

200

205

198

189

204

Low third

177

175

192

163

161

173

177

194

180

163

180

209

230

192

206

178

186

Average Rents per 5-year Average Yield or CSR2

Rent per bushel of corn yield

$1.24 $1.27 $1.25

Rent per bushel of soybean yield

$4.16 $4.34 $4.16

Rent per CSR2 index point $2.83 $2.83 $2.87

$1.19 $4.02 $2.52

$1.15 $3.83 $2.38

$1.08 $1.28 $1.30

$3.69 $2.51

$4.21 $3.21

$4.39 $2.85

$1.26 $4.34 $2.83

$1.28 $4.33 $2.90

$1.20 $4.03 $3.05

$1.26 $4.29 $2.93

$1.32 $4.30 $3.13

1/ Number of responses is the number of individuals who provided information about typical rental rates in the county. Rental data was not collected by individual farm. Information for oats, hay and pasture is reported by crop reporting district on page 12 of this publication.

Cash Rental Rates for Iowa ? 2021 Survey

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2021 CASH RENTAL RATE SURVEY FOR CROP REPORTING DISTRICT 2

County

Number of responses1/

2016-2020 average corn yield 2016-2020 average soybean yield

Average row crop CSR2 index

District 2 Average Butler

204

16

197

207

Cerro Gordo

19

192

56

56

55

79

80

79

Floyd 18 195 54 83

Franklin Hancock Humboldt Kossuth Mitchell Winnebago Worth Wright

23

24

9

16

17

24

20

18

200

194

192

196

201

199

195

194

57

56

56

59

56

58

55

56

81

76

81

79

83

74

77

79

Typical Cash Rent for Corn and Soybeans, $ per tillable acre

Overall average

$238 $258 $235 $228

$256

High quality third Average response Range of responses

Medium quality third Average response Range of responses

Low quality third Average response Range of responses

$269 $295 $272 $260

$286

230-370 225-320 200-325 200-375

$238 $260 $237 $228

$255

200-325 185-275 175-285 185-330

$205 $220 $197 $195

$226

175-275 155-230 150-240 150-290

$242

$273 220-325

$244 200-275

$211 180-250

$239

$272 220-325

$241 220-265

$206 175-230

$239

$269 250-295

$244 230-275

$204 150-230

$232

$265 220-325

$228 175-275

$204 150-260

$224

$228 $230

$253

$259 $256

215-325 225-300 220-300

$226

$228 $230

180-275 185-275 200-275

$193

$198 $204

150-230 160-240 180-245

Typical Corn Yield, bushels per acre, USDA NASS Special Tabulation 2015-2019

High third

211

219

206

207

218

205

213

209

213

Middle third

194

199

188

189

203

189

193

196

199

Low third

172

179

166

165

184

172

171

176

169

214

206

209

195

189

195

174

164

170

Average Rents per 5-year Average Yield or CSR2

Rent per bushel of corn yield

$1.21 $1.25 $1.22

Rent per bushel of soybean yield

$4.23 $4.61 $4.27

Rent per CSR2 index point $3.00 $3.23 $2.97

$1.17 $4.22 $2.75

$1.28 $4.49 $3.16

$1.25 $4.32 $3.18

$1.24 $4.27 $2.95

$1.22 $4.05 $3.03

$1.15 $4.14 $2.80

$1.13 $3.86 $3.03

$1.17 $4.15 $2.96

$1.19 $4.11 $2.91

1/ Number of responses is the number of individuals who provided information about typical rental rates in the county. Rental data was not collected by individual farm. Information for oats, hay and pasture is reported by crop reporting district on page 12 of this publication.

Cash Rental Rates for Iowa ? 2021 Survey

Page 5

2021 CASH RENTAL RATE SURVEY FOR CROP REPORTING DISTRICT 3

County

Number of responses1/

2016-2020 average corn yield 2016-2020 average soybean yield

Average row crop CSR2 index

Allamakee

District 3

and

Average Winneshiek Black Hawk

119

9

19

Bremer 11

Buchanan Chickasaw Clayton Delaware Dubuque Fayette

10

10

7

17

11

9

Howard 16

203

197

200

207

208

199

203

208

211

198

195

57

55

57

57

57

54

59

63

60

57

53

79

76

86

84

83

83

68

77

69

81

83

Typical Cash Rent for Corn and Soybeans, $ per tillable acre

Overall average

$253

$236

$263

$260

High quality third Average response Range of responses

Medium quality third Average response Range of responses

Low quality third Average response Range of responses

$289 $256 $214

$269 245-300

$240 225-275

$199 175-225

$299 250-350

$299 250-350

$268 225-325

$263 225-300

$223 175-275

$218 175-265

$273

$310 280-350

$271 210-300

$238 180-275

$233

$264

$282

$285

$264

$216

$273

$317

$314

$336

$287

$243

240-340 275-365 250-425 250-410 260-335 190-300

$230

$266

$287

$295

$269

$217

195-275 225-325 220-390 220-350 240-315 175-250

$197

$211

$244

$223

$236

$186

150-240 190-250 195-300 140-285 190-270 160-210

Typical Corn Yield, bushels per acre, USDA NASS Special Tabulation 2015-2019

High third

217

209

220

227

221

214

Middle third

198

189

201

211

204

195

Low third

171

163

176

181

178

161

213

222

227

217

211

192

206

206

199

193

155

184

177

176

171

Average Rents per 5-year Average Yield or CSR2

Rent per bushel of corn yield

$1.25

$1.20

$1.32

Rent per bushel of soybean yield

$4.45

$4.29

$4.61

Rent per CSR2 index point $3.24

$3.11

$3.06

$1.26 $4.56 $3.10

$1.31 $4.79 $3.29

$1.17 $4.31 $2.81

$1.30 $4.47 $3.88

$1.36 $4.48 $3.66

$1.35 $4.75 $4.13

$1.33 $4.63 $3.26

$1.11 $4.08 $2.60

1/ Number of responses is the number of individuals who provided information about typical rental rates in the county. Rental data was not collected by individual farm. Information for oats, hay and pasture is reported by crop reporting district on page 12 of this publication.

Cash Rental Rates for Iowa ? 2021 Survey

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2021 CASH RENTAL RATE SURVEY FOR CROP REPORTING DISTRICT 4

County

Number of responses1/

2016-2020 average corn yield 2016-2020 average soybean yield

Average row crop CSR2 index

District 4 Average Audubon Calhoun Carroll Crawford Greene Guthrie Harrison Ida

186

12

22

13

16

9

13

26

10

198

197

191

199

213

193

187

189

211

Monona Sac

17

12

189

201

Shelby Woodbury

24

12

204

207

57

56

55

58

60

56

54

54

62

56

57

57

58

78

77

84

80

73

82

83

73

81

71

86

72

73

Typical Cash Rent for Corn and Soybeans, $ per tillable acre

Overall average

$247 $246 $231 $249 $260

Irrigated land average

High quality third

Average response

$281 $284 $265 $285 $289

Range of responses

250-300 235-310 240-350 270-325

Medium quality third

Average response

$246 $248 $229 $247 $258

Range of responses

225-275 200-250 210-300 230-300

Low quality third

Average response

$214 $206 $197 $216 $233

Range of responses

170-230 185-210 175-250 200-260

$242

$275 250-300

$241 215-275

$210 185-225

$206

$243 190-300

$210 160-280

$164 135-200

$249

$270

$254 $257

$257

$247

$278 $304 $291 $285 $279 235-300 275-350 240-350 250-325 250-340

$248 $267 $255 $254 $246 210-275 245-300 220-300 230-285 200-290

$221 $239 $216 $233 $216 190-250 220-275 160-275 200-265 175-275

$255

$292 260-325

$251 235-275

$222 185-240

Typical Corn Yield, bushels per acre, USDA NASS Special Tabulation 2015-2019

High third

220

218

208

221

231

219

212

213

231

216

225

222

224

Middle third

198

195

195

205

209

200

170

192

209

194

202

203

205

Low third

174

169

179

182

189

171

136

169

186

157

182

177

187

Average Rents per 5-year Average Yield or CSR2

Rent per bushel of corn yield

$1.25 $1.25 $1.21

Rent per bushel of soybean yield

$4.34 $4.39 $4.20

Rent per CSR2 index point $3.19 $3.19 $2.75

$1.25 $4.29 $3.11

$1.22 $4.33 $3.56

$1.25 $4.32 $2.95

$1.10 $3.81 $2.48

$1.32 $1.28 $1.34 $1.28 $1.21

$4.61 $3.41

$4.35 $3.33

$4.54 $3.58

$4.51 $2.99

$4.33 $3.43

$1.23 $4.40 $3.49

1/ Number of responses is the number of individuals who provided information about typical rental rates in the county. Rental data was not collected by individual farm. Information for oats, hay and pasture is reported by crop reporting district on page 12 of this publication.

Cash Rental Rates for Iowa ? 2021 Survey

Page 7

2021 CASH RENTAL RATE SURVEY FOR CROP REPORTING DISTRICT 5

County

Number of responses1/

2016-2020 average corn yield 2016-2020 average soybean yield

Average row crop CSR2 index

District 5 Average Boone Dallas Grundy Hamilton Hardin

222

22

12

23

13

21

Jasper Marshall

17

21

Polk 19

Poweshiek Story

12

24

197

190 180

207

192

199

212

220

187

197

189

56

55

53

61

54

57

60

62

53

56

54

84

85

88

88

80

84

80

82

89

79

86

Tama Webster

22

16

198

193

58

53

85

78

Typical Cash Rent for Corn and Soybeans, $ per tillable acre

Overall average

$245 $236 $226 $273 $213 $248 $246 $255 $243

High quality third Average response Range of responses

Medium quality third Average response Range of responses

Low quality third Average response Range of responses

$275 $261 $254 $304 $239 $279 $276 $287 $276 235-290 200-300 250-375 200-280 255-310 240-325 235-350 235-325

$246 $237 $229 $275 $221 $243 $243 $257 $242 205-265 190-260 235-315 190-260 190-280 200-280 205-325 210-300

$213 $210 $195 $241 $179 $222 $219 $221 $210 180-240 165-225 180-290 120-240 175-250 180-240 160-275 191-230

$251

$285 225-325

$257 210-300

$211 160-265

$244 $269 $233

$276 $309 $258 240-350 225-375 215-300

$241 $270 $236 200-280 200-325 190-275

$215 $228 $204 180-250 175-300 160-250

Typical Corn Yield, bushels per acre, USDA NASS Special Tabulation 2015-2019

High third

222

214 207

238

217

227

227

234

208

226

217

231

213

Middle third

200

194 189

217

194

207

198

213

190

194

194

210

196

Low third

176

176 164

193

175

180

175

185

170

168

168

182

177

Average Rents per 5-year Average Yield or CSR2

Rent per bushel of corn yield

$1.24 $1.24 $1.26

Rent per bushel of soybean yield

$4.35 $4.29 $4.26

$1.32 $4.48

Rent per CSR2 index point $2.93 $2.78 $2.57 $3.10

$1.11 $3.94 $2.66

$1.25 $4.35 $2.95

$1.16 $4.10 $3.08

$1.16 $4.11 $3.11

$1.30 $4.58 $2.73

$1.27 $4.48 $3.18

$1.29 $4.52 $2.84

$1.36 $4.64 $3.16

$1.21 $4.40 $2.99

1/ Number of responses is the number of individuals who provided information about typical rental rates in the county. Rental data was not collected by individual farm. Information for oats, hay and pasture is reported by crop reporting district on page 12 of this publication.

Cash Rental Rates for Iowa ? 2021 Survey

Page 8

2021 CASH RENTAL RATE SURVEY FOR CROP REPORTING DISTRICT 6

County

District 6 Average Benton

Cedar

Clinton

Iowa Jackson

Number of responses1/

2016-2020 average corn yield

2016-2020 average soybean yield

Average row crop CSR2 index

137

25

22

14

7

7

199

195

202

203

196

196

58

59

60

59

54

58

81

86

86

74

79

67

Typical Cash Rent for Corn and Soybeans, $ per tillable acre

Overall average

$243

$255

$245

$254

High quality third Average response Range of responses

Medium quality third Average response Range of responses

Low quality third Average response Range of responses

$288

$293

$287

$299

240-350 195-350 275-350

$244

$256

$240

$255

200-300 180-280 210-300

$198

$214

$209

$207

165-260 150-250 150-250

$222

$264 225-330

$216 200-240

$187 170-200

$235

$280 270-300

$240 200-280

$186 150-200

Typical Corn Yield, bushels per acre, USDA NASS Special Tabulation 2015-2019

High third

220

224

226

223

215

211

Middle third

196

206

206

195

198

188

Low third

166

181

179

171

172

160

Average Rents per 5-year Average Yield or CSR2

Rent per bushel of corn yield

$1.22 $1.31

$1.21

Rent per bushel of soybean yield

$4.18 $4.32

$4.08

Rent per CSR2 index point

$3.01 $2.97

$2.85

$1.25 $4.31 $3.43

$1.13 $4.11 $2.81

$1.20 $4.05 $3.51

Johnson 12 192 56 85

$241

$288 230-375

$242 180-300

$194 160-225

213 185 157

$1.26 $4.30 $2.84

Jones 12 201 57 77

$237

$290 215-350

$240 185-280

$180 140-225

218 190 165

$1.18 $4.16 $3.08

Linn 15 205

Muscatine 14 193

Scott 9

204

58

59

62

87

83

89

$252

$233

$260

$291

$273

$314

250-325 240-300 285-350

$248

$236

$268

220-285 200-280 260-275

$219

$190

$199

180-265 165-230 180-220

226

214

225

196

192

202

157

154

165

$1.23 $4.34 $2.90

$1.21 $3.95 $2.81

$1.27 $4.19 $2.92

1/ Number of responses is the number of individuals who provided information about typical rental rates in the county. Rental data was not collected by individual farm. Information for oats, hay and pasture is reported by crop reporting district on page 12 of this publication.

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