Iowa Cash Rental Rates Drop for First Time in 6 Years

The average cash rental rate for Iowa farmland decreased for the first time since 2019, according to the 2025 Cash Rental Rates for Iowa survey conducted by Iowa State University Extension and Outreach. The statewide average fell by 2.9% to $271 per acre, down from a record-high $279 held over the previous two years.

The annual survey was released last week. The results aim to serve as a general reference point for negotiating typical rental rates for next year. This year’s survey used 1,492 responses from a broad cross-section of Iowans including farmers, landowners, realtors, farm managers, and lenders. The report covered a combined 2.5 million acres of cash-rented farmland across Iowa.

Regional and Land Quality Variability

Cash rent changes varied significantly across Iowa’s nine crop reporting districts. The largest decline was recorded in south central Iowa (District 8), where rates dropped by 6.9%. In contrast, southeast Iowa (District 9) was the only district to post an increase, with a 2.8% rise. That set a new regional high of $254 per acre, which is $2 above its previous high in 2023.

County-level data showed similar trends: 68 of Iowa’s 99 counties experienced year-over-year declines in average cash rent for corn and soybean land.

When categorized by land quality, all classes saw rent reductions:

• High-quality land: Down 3.4%, from $328 to $317 per acre.

• Medium-quality land: Down 2.5%, from $278 to $271 per acre.

• Low-quality land: Down 3.0%, from $232 to $225 per acre.

  
  

Other Crops and Land Uses 

The 2025 report also includes typical rental rates for a variety of land uses beyond corn and soybeans. For the first time, it also provides data on cash rents for land under organic crop production.

• Alfalfa hay, established: $206 

• Grass hay, established: $150  

• Oats: $187 

• High-productivity pasture: $94 

•  Low-productivity pasture: $61 

• Cornstalk grazing: $13 

• Hunting rights: $26

In addition to averages, the survey outlines the typical rent per bushel of crop yield and per Corn Suitability Rating (CSR2) index point, which measures soil productivity. On average, farmers paid $1.39 per bushel of corn and $4.67 per bushel of soybeans, with rents per CSR2 index point ranging from $2.32 to $4.78 statewide.

RELATED: This is why a 2024 report predicted a flat year for farmland values in Kansas.

The decline in cash rents mirrors shifts in broader agricultural economics. While rates have remained historically high in recent years, current declines could signal tightening margins driven by fluctuating commodities prices, land values, and federal support payments.

The author of the survey, Ann Johanns, also writes this on the Iowa State Extension and Outreach website: 

“An important factor considered by landowners when negotiating cash rents is the return on their farmland investment. Calculations based on the ISU Land Value Survey and Cash Rental Rates for Iowa Survey show the evolution of the ratio of average cash rents to average land values in Iowa.

The calculations suggest that the average return on investment for landowners who cash rent their land to operators has followed a declining trend since the early 1990s, stabilizing at around 3% after 2010. Note that this ratio does not measure net returns as ownership costs, including real estate taxes, are not considered in its calculation.”

RELATED: The share of crop share leases in Iowa have been declining. This American Farmland Owner report looks into the reasons.