How Much Does Iowa Farmland Rent For?

How much can I rent my land for farming?

The average rate to rent irrigated and non-irrigated cropland in 2018 was $215 and $125 per acre, respectively.

The average rate to rent pastureland was $12.50 per acre in 2018.

These cropland rental rates and pasture lease rates vary greatly by state, with Iowa and Illinois near the top of the list (not surprising)..

How much is agricultural land rent per acre 2019?

At $140 per acre, the average rate to rent cropland in the United States in 2019 was $2 higher than in 2018. For irrigated cropland, the average rental rate per acre was $220 (up from $215 in 2018); for non-irrigated cropland it was $127 (up from $125).

Is farmland a good investment?

As an investment, farmland is best characterized as a type of real estate investment. Like “traditional” real estate, farmland can earn money in two ways. First, farmland can be leased to farmers who will use the land to grow crops. Investors can earn money from ongoing lease payments.

How much is pasture rent in Iowa?

Pasture rent may range from 1.5 to 2.0 percent of market value. For example, pasture with a sale value of $3,600 per acre will rent from $54to $72per acre ($3,600 x 1.5% to 2.0% = $54to $72). Information File C2-09, Iowa Farmland Rental Rates (USDA) has information on current values.

What does farm land rent for?

In general, cropland rental rates are higher than hay and pasture land. New England cropland lease rates can range from $40 per acre/year to $300 per acre/year.

How much is an acre of Iowa farmland worth?

The 2020 ISU Land Value Survey shows a 1.7% increase in average Iowa farmland values from November 2019 to November 2020. The average statewide value of an acre of farmland is now estimated at $7,559.

What is the average cash rent in Iowa?

$54.00 per acre, down $5.00 from 2019. Grundy County had the highest cash rent for non-irrigated cropland, at $272.00 per acre, followed by Bremer County, at $266.00 per acre.

How do farm leases work?

Farm Land Leases In a typical cash rent lease, the tenant is obligated to pay a set price per acre or a set rate for the leased land. With this form of lease, the tenant bears certain economic risks, and the landlord is guaranteed a predictable return, regardless of commodity prices.

What should I do with my land?

Make Money By Using Your Land As Your BusinessRaise goats to rent to people looking for eco-friendly yard maintenance. … Open up your home as a bed and breakfast. … Build wood furniture from the timber on your land. … Allow tiny houses to rent or buy portions of your land. … Plant a vineyard and bottle your own wine.Jan 24, 2018

How is farm cash rent calculated?

A cropland cash rental rate can be computed by multiplying the average CSR2 by a rental rate per CSR2 point. For example, assume a typical rental rate per CSR2 index point of $2.75 for your county. A tract of land with a CSR2 of 80 would have a rental rate of $220 ($2.75 × 80 CSR2 = $220) per acre.

How much is an acre of land worth 2020?

The United States farm real estate value, a measurement of the value of all land and buildings on farms, averaged $3,160 per acre for 2020, no change from 2019. The United States cropland value averaged $4,100 per acre, no change from the previous year.

How much does CRP pay per acre in Iowa?

The distribution of General CRP rental rates is fairly even and a majority of counties are within +/- 10 dollars of the average. Iowa also has some of the highest cash rental rates in the country at $223/acre, on average, 84 dollars per acre more than the state average General CRP rate ($139/acre).