Mason City Globe Gazette, IA
08-02-07
Cash rental rates for farmland soar
By DICK JOHNSON, Of The Globe Gazette
MASON CITY — Cash rental rates for Iowa farmland have soared with the
sharply higher corn and soybean prices that producers have seen since last fall.
The average cash rent for corn and soybean land for 2007 is estimated at $150
per acre, compared to $137 last year, according to an Iowa State University
Extension survey.
That’s the largest increase in one year since the statewide survey began in 1994.
All 12 areas surveyed showed increases, ranging from $11 to $22 per acre.
The highest overall averages in North Iowa are $179 per acre in Butler County,
$170 per acre in Hancock County, and $162 per acre in Cerro Gordo County,
according to the survey.
The highest averages for high-quality ground are $213 in Butler, $197 in
Hancock, and $191 in Cerro Gordo.
“I’ve been in ag finance for 40 years, and this is the highest I’ve ever seen for
rent,” said Paul Fitzgerald, Cerro Gordo County Extension Education
Director. “It’s going to be a challenge in 2008 for the tenant.”