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Cash rental rates continue to rise

An ag economist says Iowa farmers could pay more in cash rent as rates continue to rise.

Iowa State University Extension economist Dr. Alejandro Plastina says stronger commodity prices and farmland values are causing rates to climb.

“Tenants do have better access to a more robust working capital and a higher profitability ratio than in previous years,” Plastina said, “so they are able to afford some of that extra value for the cash rent.”

He tells Brownfield he’s concerned with the outlook for 2023. “Right now, there are not many reasons to believe nitrogen prices will go down, or that land values will go down,” Plastina said.

Plastina says Iowa farmland rent is up more than 10 percent on average, the largest uptick in rates since 2013.