CASH RENTAL RATES FOR IOWA
2004 SURVEY
The cash rental rates presented in this publication
are the result of a survey of farmers, landowners,
agricultural lenders, real estate brokers, 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 land devoted to hay production, oats, pasture, and
cornstalk grazing.
Land suitable for corn and soybeans was divided
into high, medium, and low quality thirds, based on its
expected corn yield. Estimates of expected corn yields
were derived from actual farm yields submitted for crop
insurance documentation. The rental rates summarized in
this bulletin do not reflect the value of any buildings or
storage structures, and assume that half the rent is paid
before planting and the remainder following harvest.
The information shown can be useful
in
comparing rental rates among counties and farms of
different levels of productivity. However, actual rental
terms for a particular farm should be set by mutual
agreement between the owner and tenant, based on the
productivity and other characteristics of the land being
leased. Extension publication Fm-1801, "Estimating Cash
Rental Rates for Farmland," offers guidelines for
determining a fair cash rent for a particular farm.
Circumstances such as the following may justify a
higher or lower rent in certain cases:
• Small size or unusual shape of fields
• Presence of terraces or creeks that affect the time it
takes to plant and harvest
• Difficult or restricted access to fields
• High or low fertility levels or Ph
• Existence of contracts for growing seed or specialty
grains, or application of manure
• Above or below average local grain prices due to
transportation costs, proximity to barge loading
facilities or feed demand
• USDA program variables, such as corn base and
assigned yields
Counties were grouped into areas as shown on
the