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 … [Read more...]