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Senior Advisor

2013 Iowa Cash Rent Survey

http://www.extension.iastate.edu/agdm/wholefarm/pdf/c2-10.pdf

 

Gives the breakout on rent/bushel, rent/CSR point and so forth.

 

Note that the average rent for any quality of ground in any county can vary a lot from the high and low.  There was some $500 plus land rented, but nothing remotely like that on a county average.

 

It's hard to know how much credence to give a report like this.  It's probably a small sample.  It's voluntary so that restricts it even more - some would not tell the other side of their own face what they pay in rent and some will make up any number they like.

 

On the whole, it's probably not too far off for approximation work.

 

 

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Senior Contributor

Re: 2013 Iowa Cash Rent Survey

Yes, I believe the survey does a fair job in pricing Iowa land by cash-rent. In my District in Northern Iowa, the really good stuff is cash-renting for around $6 per CSR Point, with the lower-quality land going for a $5 to $5.50 per CSR Point Range. But again, you have a huge range. Part of the reason for the huge range in Cash-Rent can be do to some very, very, large lack of current knowledge with some Iowa landowners. I know of 2 cases where you have 2 very old lady landowners in the 85-93 age range that are cash-renting there land out for only $140 to $160/acre. This was what there husband's rented the land out for 12 to 15 years ago and then the husband's died, and there wife's just kept the cash rent at what there husband's decided 15 years ago. These 2 very old ladies are really geting ripped-off big time by the farmers that are cash-renting there land, but the old ladies just want to keep the renters there husband's picked out 15 years ago, plus keep the same rent that they were paying 15 years ago. I am sure the land is paid-off and if they own say, just 640 acres, 640 acres* $160/acre cash rent= $102,400/year+ $24,000/year in Social Sercuity, that's a total yearly income of $126,400/year. More than enough for a 93 year old Iowa lady to live on. But the guys renting there land for such a low price of $140/acre to $160/acre should be ashamed of themselves for taking advantage of a 93 year old Iowa lady. And this is land that is high-quality too, at least an 80+ CSR Rating and yields of at least 220bu. Land of this quality should be renting for $450 to $480/acre. I know of just 2 old ladies that are doing this, but across the entire state of Iowa I am sure there are many, many, old Iowa ladies that there husband's have died years ago and they are still renting the land out for the cash-rent that was set-up over 12 years ago. The farmers renting this land at such a discounted cash-rent really, really, should be ashamed of themselves, but it is none of business.

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Advisor

Re: 2013 Iowa Cash Rent Survey

Over all, the whole survey seems reasonable to me, South Central Iowa looks about right to me, considering the weather conditions they face down there.   Plus . . . you have to remember any increase in acreage for cropland down there over the past four years has been land coming out of CRP so that the Federal Crop Insurance could be farmed since it pays more then the CRP.   I would imagine that rents will be going up in South Central Iowa after this year, be kinda interesting with $3 corn this fall. LMAO!  John

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Senior Advisor

Re: 2013 Iowa Cash Rent Survey

With lower commodity prices looming, be interesting to see how long before some marginal land is accepted back into the CRP program.
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Frequent Contributor

Re: 2013 Iowa Cash Rent Survey

     there are cash rent stories all over the price range in every state. whatever the landowner and tenant agree on is there business and no one elses. Maybe the little old lady is very happy with the farmer or farmers she deals with and is giving him what she wants. maybe the farmer and or farmers she is working with do other things for her and her family to make up for  a higher rent., at her request  and maybe just maybe she will leave them the farm  , would that be wrong to in your eyes.  i know landowners who have left the farm to a long term tenant   and really ticked off some family members because they thought it was theres. In todays world anything is possible and still legal. I have seen agreements between family members and non family members who are all in agreement  and it works . but you would not believe the conditions, of who gets the crop and pays the bills. anyone can do or give anyone anything they want    and they should be able to .   good luck to you. and dont  assume anything.

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Senior Advisor

Re: 2013 Iowa Cash Rent Survey

My son in laws mother's husband died years ago and told her to rent the farm to the current tenant for as long as he wanted it and didn't provide for rent increases. She sold the farm to get out from under it.

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Senior Advisor

Re: 2013 Iowa Cash Rent Survey

No No! Dem Bulls said it couldn't go down. Sompin about the funnymentals! lol

 

BTW.. the FSA said they will be offering options to reup CRP acres but the details weren't out yet.

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Senior Advisor

Re: 2013 Iowa Cash Rent Survey

I believe the sign up for CRP begins this month some time.
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Frequent Contributor

Re: 2013 Iowa Cash Rent Survey

Why should some one be ashamed of the terms that the land owner agreed to?  There are all kinds of stories and all kinds of cash rents paid and many times there are other things that the tenant does beside just write a check.  

 

I know of a widow that got rid of the guy that had farmed her farm since the 80s shortly after her husband died.  She found out the first winter that it cost more to hire her driveway plowed out then what the extra rent she got paid.  It cost her money to get greedy, but she didn't think it was worth anything when her old tenant came and cleaned her drive every time it snowed.

 

There is a farm a few miles from me that the tenant doesn't pay any rent to the landowner.  The owner has a job making a lot of money and says he will only give 34% of the rent to DC in income tax.  The tenant pays the property tax and spends $XXX on the farm every year in improvements. The tenant has built new fence, ponds, terraces, and put concrete in a barn in recent years to pay his rent.

 

I have heard some older landowners stay that only need enough $ to live off of, so they are happy with a lower cash rent then what some one may pay them.  There are still a few folks out there that think there are more important things then having a mound of cash under their matress.

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Senior Advisor

Re: 2013 Iowa Cash Rent Survey

Excellent post 92774, excellent post. I've got two sister landlords that my granddad started share cropping for over 60 years ago. Although this isn't cash rent by any means, certain ethics apply to both types of rental agreements. I've found out open communication and frequent phone calls are as important to them as their crop share. If I ever have a question or concern, I always discuss things with them and get their opinions. They always tell me the same thing, "Your the farmer, there nothing we tell you that you don't already know about the land. You've always treated the land as it was yours so we know you'll do what is best for the situation". Having respect like that from someone who is over twice my age holds a dear place in my heart. Yes, there still are people that are more about other things other than the love of the evil $.
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