Farmland Rental Rates increase 18% for 2012

Good news for landowners, but tougher times for younger, smaller farm operators. As Farmland prices increase, according to an Iowa State University Extension survey, rental rates for Iowa farmland have also increased 18% to $252 an acre—even larger increases for higher quality land, up to $400 to $500 an acre!

The $38 average increase per acre is in line with still-high commodity prices, with corn at $6/bushel and soybeans at $13.70/bushel this April. Comparatively, rental prices for Iowa farmland were $176 per acre in 2008, and commodity prices averaged $4.10/bushel for corn and $10.20/bushel for soybeans.

Benton County farmland rental rates range from $230 to $297 per acre. Typical corn yield per acre ranged from 140 to 194 bushels per acre. Average rents per five year average yield or CSR was $1.68 / bushel of corn, $5.54 / bushel of soybeans or $3.71 per CSR index point.

The farmland rental statistics are not only based on land used to cultivate corn or soybeans, but also oats, hay, grazing pasture, and, this year— land that is rented out for hunting.

Call me today to see if there is farmland available or if you have any questions.