Rick Klein: How Young Farmer Hopes to Find Farmland to Rent

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For farmers looking to expand their operations, finding additional farmland to rent could be more difficult than finding the money to pay for it.

Just ask Rick Klein.

About 40% of the nation’s farmland is rented or leased, according to USDA, and Klein wants to rent more of it…if he can find available land.

Klein is trying to grow his farming operation in northwest Iowa, where competition for available farmland is fierce and opportunities to rent additional acres are difficult to find.

Why Is Competition for Rented Farmland So Fierce?

Even when land becomes available, Klein knows he will likely be competing against larger, well-established farmers with bigger bank accounts and existing relationships with landowners.

It's a challenge that illustrates one of the biggest obstacles facing smaller farmers who want to expand: Sometimes, simply getting an opportunity is the hardest part.

How Do You Find Farmland to Rent?

Locating farmland to rent is often not as simple as checking a directory or responding to an advertisement.

"If there's any land that comes up for rent around the area…it's not advertised," Klein explained to American Farmland Owner from his home near Sanborn. "Especially me being a little guy, you know, good luck compared to these well-established large farmers in the area that are going to definitely outbid you, just because they can."

Rick Klein bio:

• 3rd generation family farmer – Near Sanborn, Iowa

• Farms cattle, hogs, corn, and soybeans

• Klein Beef Direct – Direct-to-consumer beef sales

Competing with Larger Farms

Those larger operations often have advantages that smaller farmers simply cannot match.

Established farmers may own additional acreage, have long-standing rental agreements, or be able to spread the cost of higher cash rents across more acres. That can make it difficult for someone trying to build a smaller operation to compete.

Klein understands the economics. He also understands the relationships.

"It's super hard in this area to get, to even just find, or hear, or know about land that's for rent," he said.

Even when an opportunity surfaces, the price can be another obstacle.

Klein questioned whether offering $350 an acre would even be enough to get a landowner's attention in his area.

"I don't even know if 350 would get you in the door," he said.

That creates a difficult situation for someone trying to grow. A farmer needs additional acres to increase production and build a stronger operation, but the cost of renting those acres can make expansion financially difficult.

And unlike larger farming operations, smaller farmers may not have the existing acreage or financial flexibility to absorb higher rental costs.

But Klein said the biggest hurdle may not necessarily be the amount of money he's willing to pay. It's getting connected with the right people.

"It just comes down to," Klein said, "who you know is how it works. That's everywhere, but especially around our area…it's who you know, not what you know, type thing for if they're going to give you a chance."

That's one reason Klein decided to put the word out in a Facebook post about his interest in renting additional farmland.

He isn't expecting a phone call tomorrow with an offer to rent a few hundred acres. Instead, he hopes making his intentions known will put his name in someone's mind when circumstances eventually change.

A landowner might pass away, a farming arrangement might end, or someone renting ground today might decide five years from now that they no longer want to continue.

When that happens, Klein hopes someone remembers his name.

"…that was planting a seed in people's head," he said.