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Iowa cash rents show slight increase

Rental rates for Iowa farmland this year increased about one-and-a-half percent, according to an annual Iowa State University survey.

Rates across the state averaged 222 dollars per acre, compared to 219 per acre in 2019. Levels are about 18 percent lower than the historical peak of 270 reached in 2013.

Survey coordinator Alejandro Plastina says he’s surprised cash rents have not gone down. He says that’s likely a reflection of government programs injecting enough liquidity.

Plastina predicts the poor economic conditions in agriculture will continue to pressure cash rents and land values, and barring strong government assistance, it’s possible both land values and rent could see future declines.

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