ISU Cash Rental Rates for Iowa-2017 Survey

[Pages:12]Cash Rental Rates for Iowa 2017 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.

The cooperation and assistance of the landowners, farmers, and agribusiness people who responded to this survey are greatly appreciated. Figure 1 shows the distribution of the 1,448 responses was 52 percent from farm operators, 29 percent from landowners, 9 percent from agricultural lenders, 9 percent from professional farm managers and realtors, and 2 percent from other professions. Respondents indicated being familiar with a total of 1.7 million cash rented acres across the state.

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

Figure 1. Distribution of 1,448 responses to the 2017 survey

Professional farm managers

and realtors, 9%

Other, 2%

Agricultural lenders, 9%

Landowners, 29%

Farm operators, 52%

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.

2012-2016 average yields ? based on farm level data collected by National Agricultural Statistics Service (NASS) for each county.

Average row crop CSR2 index ? average corn suitability rating 2 (CSR2) for the highest rated acres in each county, up to 110 percent of the number of acres planted to corn and soybeans in that county. Note: starting in 2014, values were converted to the CSR2 system, based on ISPAID 8.1 (extension.iastate.edu/soils/ispaid).

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

FM 1851 Revised May 2017

Page 2

Cash Rental Rates for Iowa - 2017 Survey

Typical corn yields ? average yields for the high third, medium third, and low third productivity farms in each county as reported to NASS.

Average rents per unit ? overall average rent for corn and soybean land in each county, divided by the 5-year average corn yield, the 5-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, $/AUM ? rent charged per animal unit month. One AUM is equal to a beef cow and calf or 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.

Overall Average of Typical Cash Rents 2013-2017 Corn and Soybean Acres ($/acre)

2013 2014 2015 2016 2017

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

State

$283 294 281 294 297 284 257 210 229

$270

$270 270 277 288 284 273 249 202 229

$260

$259 254 273 265 261 255 242 187 217

$246

$248 243 250 245 239 242 220 183 203

$230

$234 218 241 231 228 231 206 180 204

$219

. . . and justice for all

Iowa State University Extension and Outreach does not discriminate on the basis of age, disability, ethnicity, gender identity, genetic information, marital status, national origin, pregnancy, race, religion, sex, sexual orientation, socioeconomic status, or status as a U.S. veteran. (Not all prohibited bases apply to all programs.) Inquiries regarding non-discrimination policies may be directed to Ross Wilburn, Diversity Officer, 2150 Beardshear Hall, 515 Morrill Road, Ames, Iowa 50011, 515294-1482, wilburn@iastate.edu.

Prepared by Alejandro Plastina, extension economist Ann Johanns, extension program specialist

Madison Wood, Craig Welter, research assistants

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

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

Cash Rental Rates for Iowa - 2017 Survey

2017 CASH RENTAL SURVEY FOR CROP REPORTING DISTRICT 1

Page 3

County

Number of responses1/ 2012 - 2016 avg. corn yield 2012 - 2016 avg. bean yield Avg. row crop CSR2 index

District Average

222 183 54 87

Buena Vista

15 177 51 89

Cherokee

19 191 59 90

Clay

13 182 53 88

Dickinson Emmet

11

17

173

180

50

49

89

85

Lyon

10 186 58 80

PocaO'Brien Osceola Palo Alto Plymouth hontas

22

14

11

51

22

190

187

180

180

183

58

54

51

55

51

95

88

85

81

86

Sioux

17 188 60 89

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

Overall average

$234 $227 $251 $239 $193 $203 $262 $242

High quality third

Average response Range of responses

$269 $254 $284 $280 $226 $227 $318 $276 200-300 240-310 200-350 190-260 210-250 300-350 200-350

Medium quality third

Average response Range of responses

$234 $226 $251 $235 $193 $202 $262 $242 175-250 225-285 175-310 170-225 175-230 220-275 180-300

Low quality third

Average response Range of responses

$198 $201 $220 $202 $159 $181 $205 $206 125-225 160-250 150-275 150-190 160-205 175-250 140-250

$253

$283 220-325

$258 210-280

$217 180-250

$222

$248 200-300

$222 190-250

$195 150-225

$235

$283 200-350

$235 150-290

$188 100-250

$223 $255

$252 $295 230-300 250-350

$224 $263 185-250 220-300

$192 $207 130-225 175-250

Typical Corn Yield, bu. per acre

High third

199

200

200

200

Middle third

177

175

180

175

Low third

150

140

152

150

Average Rents per 5-year Average Yield or CSR2 Rent per bu. of corn yield $1.28 $1.28 $1.31 Rent per bu. of bean yield $4.32 $4.45 $4.25 Rent per CSR2 index point $2.69 $2.55 $2.79

$1.31 $4.51 $2.72

Typical Cash Rent for Oats, Hay, and Pasture, $ per acre2/

Alfalfa hay, established

$211

Grass hay, established

$124

Oats

$190

Improved perm. pasture

$73

Unimproved perm. pasture $45

Pasture, $/AUM

NA

Cornstalk grazing

$10

Hunting rights

$9

190 168 147

$1.12 $3.86 $2.17

193 175 152

$1.13 $4.14 $2.39

200 180 160

$1.41 $4.52 $3.28

202 185 160

$1.27 $4.17 $2.55

$243 $133

$87 $57

200 181 160

$1.35 $4.69 $2.88

200 175 155

$1.23 $4.35 $2.61

200 170 124

$1.31 $4.27 $2.90

$73

199

205

177

185

150

150

$1.22 $4.37 $2.59

$1.36 $4.25 $2.87

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. 2/ No values are reported if fewer than five responses were received.

Cash Rental Rates for Iowa - 2017 Survey

Page 4

2017 CASH RENTAL SURVEY FOR CROP REPORTING DISTRICT 2

County

District Average

Number of responses1/

200

2012 - 2016 avg. corn yield 176

2012 - 2016 avg. bean yield 51

Avg. row crop CSR2 index 83

Butler

21 174 51 81

Cerro Gordo

16 169 50 82

Floyd

17 170 50 85

Franklin

21 180 51 84

Hancock Humboldt Kossuth Mitchell

18

11

19

19

178

176

183

174

51

50

52

51

82

86

84

87

Winnebago

17 177 51 80

Worth

16 174 51 82

Wright

25 178 50 85

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

Overall average

$218 $244

$218

$209

High quality third

Average response Range of responses

$249

$286

$250

$247

200-340 200-300 200-300

Medium quality third

Average response Range of responses

$219 $243

$217

$208

175-300 170-250 150-275

Low quality third

Average response Range of responses

$185 $203

$188

$172

150-260 150-225 125-200

$221

$250 175-280

$226 150-255

$188 125-235

$217

$241 200-285

$221 170-250

$188 145-220

$209

$217

$215

$207

$209 $228

$238

$243

$253

$235

$236 $264

175-290 200-290 190-300 220-275 185-280 220-330

$212

$218

$215

$207

$210 $229

150-260 180-260 150-265 190-235 165-255 175-260

$178

$191

$177

$179

$182 $193

120-235 150-230 100-210 150-200 140-210 150-225

Typical Corn Yield, bu. per acre

High third

196

195

187

Middle third

171

170

162

Low third

136

118

120

Average Rents per 5-year Average Yield or CSR2 Rent per bu. of corn yield $1.24 $1.40 Rent per bu. of bean yield $4.29 $4.78 Rent per CSR2 index point $2.61 $3.01

$1.29 $4.36 $2.66

Typical Cash Rent for Oats, Hay, and Pasture, $ per acre2/

Alfalfa hay, established

$185

Grass hay, established

$118

Oats

$161

Improved perm. pasture

$68

Unimproved perm. pasture $44

Pasture, $/AUM

NA

Cornstalk grazing

NA

Hunting rights

NA

200 170 128

$1.23 $4.18 $2.46

200 175 150

$1.23 $4.33 $2.63

$61 $42

196 174 144

$1.22 $4.25 $2.65

199 178 141

$1.19 $4.18 $2.43

200

192

192

200

200

175

165

170

171

175

155

130

130

130

150

$1.19 $4.17 $2.58

$1.24 $4.22 $2.47

$1.17 $4.06 $2.59

$1.20 $4.10 $2.55

$1.28 $4.56 $2.68

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. 2/ No values are reported if fewer than five responses were received.

Cash Rental Rates for Iowa - 2017 Survey

2017 CASH RENTAL SURVEY FOR CROP REPORTING DISTRICT 3

Page 5

County

District Average

Number of responses1/

139

2012 - 2016 avg. corn yield 177

2012 - 2016 avg. bean yield 53

Avg. row crop CSR2 index 79

Allamakee

6 174 53 76

Black Hawk

19 171 52 85

ChickBremer Buchanan asaw

13

18

11

176

175

173

53

53

50

87

82

84

Clayton

9 183 56 71

Delaware Dubuque Fayette

16

10

11

178

188

179

54

57

54

78

69

81

Howard

12 173 51 83

Winneshiek

14 179 52 78

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

Overall average

$241

$216

$256

$256

High quality third

Average response

$277

$248

$297

$297

Range of responses

225-275 250-350 250-330

Medium quality third

Average response

$242

$218

$262

$249

Range of responses

210-225 205-310 195-300

Low quality third

Average response

$205

$182

$209

$223

Range of responses

175-190 150-255 185-250

$260

$293 225-330

$258 190-300

$228 150-265

$219

$247 190-300

$229 180-275

$183 150-225

$234

$279 225-310

$234 195-275

$189 160-225

$264

$298 230-335

$266 200-300

$229 180-260

$262

$258

$197

$232

$310

$288

$223

$265

270-370 270-300 170-270 220-320

$250

$261

$199

$231

225-265 250-275 155-240 180-275

$225

$226

$168

$199

210-240 200-245 145-210 150-250

Typical Corn Yield, bu. per acre

High third

197

190

195

Middle third

171

158

168

Low third

134

130

124

Average Rents per 5-year Average Yield or CSR2 Rent per bu. of corn yield $1.36 $1.24 Rent per bu. of bean yield $4.53 $4.08 Rent per CSR2 index point $3.05 $2.84

$1.50 $4.92 $3.01

Typical Cash Rent for Oats, Hay, and Pasture, $ per acre2/

Alfalfa hay, established

$218

Grass hay, established

$175

Oats

$193

Improved perm. pasture

$71

Unimproved perm. pasture $45

Pasture, $/AUM

$20

Cornstalk grazing

$15

Hunting rights

NA

200 175 150

$1.45 $4.83 $2.94

194 170 140

$1.49 $4.91 $3.17

196 170 120

$1.27 $4.38 $2.61

200 168 135

$1.28 $4.18 $3.30

200 180 145

$1.48 $4.89 $3.38

$269

205

200

190

200

175

175

170

175

131

140

129

135

$1.39 $4.60 $3.80

$1.44 $4.78 $3.19

$1.14 $3.86 $2.37

$1.30 $4.46 $2.97

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. 2/ No values are reported if fewer than five responses were received.

Cash Rental Rates for Iowa - 2017 Survey

Page 6

2017 CASH RENTAL SURVEY FOR CROP REPORTING DISTRICT 4

County

District Audu-

Wood-

Average bon Calhoun Carroll Crawford Greene Guthrie Harrison Ida Monona Sac Shelby bury

Number of responses1/

190

11

23

11

13

12

16

18

12

20

11

21

22

2012 - 2016 avg. corn yield 172

171

172

166

177

168

159

173

188

160

174

183

177

2012 - 2016 avg. bean yield 51

52

49

51

54

49

48

49

57

49

53

54

52

Avg. row crop CSR2 index 78

76

88

82

74

85

81

73

81

69

88

72

70

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

Overall average

$231 $235 $207 $236

Irrigated land average

$260

High quality third

Average response

$268 $271 $239 $275

Range of responses

195-325 210-270 165-350

Medium quality third

Average response

$234 $230 $218 $244

Range of responses

155-280 180-250 155-290

Low quality third

Average response

$193 $202 $164 $189

Range of responses

135-250 125-180 135-220

$251

$279 250-310

$250 225-275

$223 200-250

$224

$260 215-290

$228 180-265

$183 165-205

$199

$238

$254

$234 $266

$244

$227

$229 $266

$227 $277 $286 $276 $279 $266 $277 170-275 230-325 250-300 220-325 230-350 225-325 200-300

$210 $241 $257 $229 $250 $225 $226 145-240 200-280 240-275 190-275 200-300 190-280 150-275

$161 $197 $219 $197 $203 $189 $185 120-200 160-225 200-250 150-250 150-275 140-230 135-230

Typical Corn Yield, bu. per acre

High third

195

196

195

198

200

190

176

190

200

190

200

200

200

Middle third

170

170

167

175

175

168

150

170

180

160

174

180

170

Low third

132

130

125

125

140

126

120

140

146

118

132

141

135

Average Rents per 5-year Average Yield or CSR2

Rent per bu. of corn yield $1.34 $1.37 $1.20 Rent per bu. of bean yield $4.50 $4.52 $4.22 Rent per CSR2 index point $2.98 $3.09 $2.35

$1.42 $4.63 $2.88

$1.42 $4.65 $3.39

$1.33 $4.57 $2.64

$1.25 $4.15 $2.46

$1.38 $4.86 $3.26

$1.35 $4.46 $3.14

$1.46 $4.78 $3.39

$1.40 $4.60 $2.77

$1.24 $4.20 $3.15

$1.29 $4.40 $3.27

Typical Cash Rent for Oats, Hay, and Pasture, $ per acre2/

Alfalfa hay, established

$187

Grass hay, established

$123

Oats

$211

Improved perm. pasture

$88

$88

Unimproved perm. pasture $57

Pasture, $/AUM

NA

Cornstalk grazing

$8

$6

Hunting rights

$16

$71

$91

$75

$53

$115 $91

$66

$55

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. 2/ No values are reported if fewer than five responses were received.

Cash Rental Rates for Iowa - 2017 Survey

2017 CASH RENTAL SURVEY FOR CROP REPORTING DISTRICT 5

Page 7

County

District Average Boone

Number of responses1/

209

20

2012 - 2016 avg. corn yield 178

177

2012 - 2016 avg. bean yield 52

50

Avg. row crop CSR2 index 85

87

Dallas

12 171 50 89

Grundy Hamilton Hardin

22

22

18

185

171

179

57

49

52

88

86

85

Jasper Marshall

8

22

183

184

53

56

80

82

Polk

15 172 50 90

Poweshiek

18 182 52 79

Story

20 173 49 87

Tama

15 180 55 84

Webster

17 176 50 84

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

Overall average

$228 $227 $199 $266

High quality third

Average response

$263 $259 $242 $305

Range of responses

235-325 200-275 255-365

Medium quality third

Average response

$228 $225 $193 $269

Range of responses

200-280 150-240 225-325

Low quality third

Average response

$192 $198 $163 $225

Range of responses

175-225 100-200 165-275

$223

$257 180-330

$218 165-275

$193 145-235

$236

$269 225-325

$240 200-270

$199 175-225

$210

$235 190-290

$213 170-260

$183 140-230

$234

$273 225-300

$233 200-260

$197 160-220

$225

$258 220-300

$224 200-250

$193 165-210

$225

$260 200-300

$225 190-255

$191 150-225

$228

$264 225-300

$226 200-275

$193 175-225

$239

$281 200-350

$248 175-300

$188 150-225

$220

$252 200-300

$221 175-265

$187 150-230

Typical Corn Yield, bu. per acre

High third

195

190

190

204

190

200

197

200

195

190

187

200

200

Middle third

170

170

163

180

170

175

170

175

165

170

165

166

172

Low third

136

125

130

134

139

143

150

147

130

130

130

135

137

Average Rents per 5-year Average Yield or CSR2 Rent per bu. of corn yield $1.28 $1.28 $1.16 Rent per bu. of bean yield $4.39 $4.54 $3.98 Rent per CSR2 index point $2.68 $2.61 $2.24

$1.44 $4.67 $3.02

$1.30 $4.55 $2.59

$1.32 $4.54 $2.78

$1.15 $3.96 $2.63

$1.27 $4.18 $2.85

$1.31 $4.50 $2.50

$1.24 $4.33 $2.85

$1.32 $4.65 $2.62

$1.33 $4.35 $2.85

$1.25 $4.40 $2.62

Typical Cash Rent for Oats, Hay, and Pasture, $ per acre2/

Alfalfa hay, established

$158

Grass hay, established

$132

Oats

$151

Improved perm. pasture

$65

$63

Unimproved perm. pasture $42

$37

Pasture, $/AUM

NA

Cornstalk grazing

$15

Hunting rights

$20

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. 2/ No values are reported if fewer than five responses were received.

Cash Rental Rates for Iowa - 2017 Survey

Page 8

2017 CASH RENTAL SURVEY FOR CROP REPORTING DISTRICT 6

County

District Average Benton

Cedar

Number of responses1/

165

27

24

2012 - 2016 avg. corn yield

178

173

183

2012 - 2016 avg. bean yield

54

53

56

Avg. row crop CSR2 index

81

85

86

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

Overall average

$231

$245

$209

Irrigated land average

$247

High quality third

Average response

$274

$276

$244

Range of responses

220-325 175-325

Medium quality third

Average response

$230

$249

$206

Range of responses

175-300 140-275

Low quality third

Average response

$188

$209

$178

Range of responses

125-280 115-225

Typical Corn Yield, bu. per acre

High third

196

196

200

Middle third

170

170

175

Low third

129

131

150

Average Rents per 5-year Average Yield or CSR2

Rent per bu. of corn yield

$1.30

$1.42

Rent per bu. of bean yield

$4.25

$4.62

Rent per CSR2 index point

$2.87

$2.88

$1.14 $3.73 $2.43

Typical Cash Rent for Oats, Hay, and Pasture, $ per acre2/

Alfalfa hay, established

$164

$115

Grass hay, established

$104

Oats

$129

Improved perm. pasture

$67

$59

Unimproved perm. pasture $45

$42

$38

Pasture, $/AUM

$17

Cornstalk grazing

$9

Hunting rights

$13

Clinton 16 185 56 74

$258

$306 225-350

$257 195-300

$210 165-265

200 175 130

$1.39 $4.61 $3.49

Iowa 13 181 53 79

$222

$263 205-300

$218 180-260

$184 160-200

200 170 121

$1.23 $4.19 $2.81

Jackson

11 174 54 68

Johnson

13 175 51 83

Jones

16 175 55 77

$215

$224

$236

$254

$261

$282

200-300 180-325 250-320

$218

$226

$232

170-265 140-300 165-265

$172

$185

$194

120-240 110-270 145-225

200

195

190

170

168

165

120

130

125

$1.24 $3.98 $3.16

$1.28 $4.39 $2.70

$1.35 $4.29 $3.06

$132

$66 $48

Linn

14 174 52 86

Muscatine

17 176 55 82

Scott

14 181 58 87

$239

$207

$252

$286

$249

$316

250-325 180-300 250-350

$242

$211

$246

200-275 150-280 175-325

$188

$161

$194

100-245 90-240 160-225

192

191

200

165

167

170

120

135

130

$1.37 $4.60 $2.78

$1.18 $3.76 $2.52

$1.39 $4.34 $2.90

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. 2/ No values are reported if fewer than five responses were received.

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