By Andi Anderson
The 2025 Iowa cash rental rates survey shows an average decline of 2.9 percent, reducing the statewide rent to $271 per acre. This marks the first decrease since 2019 after two years of high rents averaging $279 per acre.
The survey is conducted annually by Iowa State University Extension and Outreach to report typical cash rents for farmland producing corn, soybeans, hay, oats, and pasture.
The survey gathered 1,492 responses from farm operators, landowners, farm managers, agricultural lenders, and others familiar with about 2.5 million cash-rented acres statewide. Respondents provided insights on typical rents, not extreme high or low values.
Cash rental trends varied across Iowa’s nine Crop Reporting Districts. Most districts experienced declines, with South Central Iowa (District 8) reporting the largest drop of 6.9 percent. The Southeast district (District 9) was the only region to show an increase of 2.8 percent, with rents rising slightly above previous peaks.
Rents also fell across all land quality classes. High-quality land dropped 3.4 percent to $317 per acre, medium-quality land decreased 2.5 percent to $271, and low-quality land declined 3 percent to $225 per acre.
The report includes data for irrigated land, alfalfa, hay, pasture, corn stalk grazing, hunting rights, and newly reported organic crop land averages by district.
The survey provides typical rent per bushel for corn and soybeans by county, considering average yields and the CSR2 soil productivity index. Rent per bushel ranged from $0.95 to $1.88 for corn and $3.11 to $6.20 for soybeans, with averages of $1.39 and $4.67 respectively. The statewide average rent per CSR2 index point was $3.38.
Landowners often consider the return on their farmland investment when setting rents. Historical data shows this return has declined since the early 1990s, stabilizing near 3 percent after 2010. This measure excludes ownership costs like property taxes.
The full survey report and related leasing resources are available from Iowa State University Extension. Farmers and landowners can use these tools to assess fair cash rents based on land quality, productivity, and market trends.
For questions, local farm management specialists offer leasing programs and advice during the summer months.
Photo Credit: pexels-karolina-grabowska
Categories: Iowa, General