The average cash rental rate for Iowa farmland decreased for the first time since 2019, according to the 2025 Cash Rental Rates for Iowa survey conducted by Iowa State University Extension and Outreach. The statewide average fell by 2.9% to $271 per acre, down from a record-high $279 held over the previous two years.
The annual survey was released recently. The results aim to serve as a general reference point for negotiating typical rental rates for next year. This year’s survey used 1,492 responses from a broad cross-section of Iowans, including farmers, landowners, realtors, farm managers, and lenders. The report covered a combined 2.5 million acres of cash-rented farmland across Iowa.
Regional and Land Quality Variability
Cash rent changes varied significantly across Iowa’s nine crop reporting districts. The largest decline was recorded in south central Iowa (District 8), where rates dropped by 6.9%. In contrast, southeast Iowa (District 9) was the only district to post an increase, with a 2.8% rise. That set a new regional high of $254 per acre, which is $2 above its previous high in 2023.
County-level Data Showed Similar Trends
A total of 68 of Iowa’s 99 counties experienced year-over-year declines in average cash rent for corn and soybean land.
When categorized by land quality, all classes saw rent reductions:
- High-quality land: Down 3.4%, from $328 to $317 per acre.
- Medium-quality land: Down 2.5%, from $278 to $271 per acre.
- Low-quality land: Down 3.0%, from $232 to $225 per acre.
Other Crops and Land Uses
The 2025 report also includes typical rental rates for a variety of land uses beyond corn and soybeans. For the first time, it also provides data on cash rents for land under organic crop production.
- Alfalfa hay, established: $206
- Grass hay, established: $150
- Oats: $187
- High-productivity pasture: $94
- Low-productivity pasture: $61
- Cornstalk grazing: $13
- Hunting rights: $26
In addition to averages, the survey outlines the typical rent per bushel of crop yield and per Corn Suitability Rating (CSR2) index point, which measures soil productivity. On average, farmers paid $1.39 per bushel of corn and $4.67 per bushel of soybeans, with rents per CSR2 index point ranging from $2.32 to $4.78 statewide.
The decline in cash rents mirrors shifts in broader agricultural economics. While rates have remained historically high in recent years, current declines could signal tightening margins driven by fluctuating commodities prices, land values, and federal support payments.
EDITOR’S TAKE:
It was bound to happen sooner or later. Cash rents have been sticky despite declining commodity prices, especially for corn and soybeans. There currently is a bifurcation in agriculture, with livestock producers doing extremely well and crop farmers at the lower end of the income scale. In addition, interest rates and input costs have remained higher, thus, causing additional pressure on margins. Something had to give and it looks like cash rents are the target. Every little bit helps when conditions are tight like they are with major commodities at the moment.
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