By Andi Anderson
The Iowa State University (ISU) Cash Rental Rates for Iowa 2025 Survey reveals key trends in rental prices for various agricultural lands.
This year’s survey highlights a drop in row crop rental rates and a steady increase in pasture and forage acre rates, marking the ninth consecutive year of growth in these areas.
For the first time in six years, row crop rental rates in Iowa have decreased by nearly 3%. This change contrasts with the continued rise in pasture and forage acre rental rates, which have increased by up to 3% in 2025.
Factors such as record-high beef prices, narrowing margins on forage acres, increased competition for existing forage land, and rising property taxes have contributed to these strong rental rates, especially for cattlemen and small-ruminant producers.
Rental rates for high-productivity pastures, which are defined by a stocking rate of 2.5 or fewer acres per pair for summer grazing and adequate fencing and water, have averaged $94 per acre in 2025.
This marks an almost 20% increase in rental rates for pastures over the past decade. In contrast, lower-productivity pastures requiring more than 2.5 acres per pair are averaging $61 per acre.
The highest rental rates are found in districts 3, 5, 7, and 4, with rates ranging from $102 to $107 per acre. Conversely, the lowest rates are reported in district 2 and district 8, at $81 per acre. District 5 experienced the largest reduction in rates, with a $26 per acre decrease, while district 9 saw the largest increase, rising by $27 per acre.
For established alfalfa hay acres, rental rates remain strong at $206 per acre in 2025, reflecting a 25% increase since 2016. Oat acres used for forage production, however, saw a slight decrease, with rates dropping by $11 to $187 per acre.
The ISU Extension farm management team gathers this survey data, providing valuable year-to-year comparisons, but it’s important to remember these are not fixed rates but starting points for negotiations, influenced by factors such as productivity, drainage capacity, and lease longevity.
Photo Credit: iowa-state-university
Categories: Iowa, Rural Lifestyle