Will farmland rental prices fall in Northeast Iowa?

(Photo courtesy of Winneshiek County Development)

It costs more money to rent farmland in Northeast Iowa than in any other part of the state, according to information from Iowa State Extension.

But with lower corn and soybean prices and higher production costs, farmers have become less willing to rent land.  The typical per acre payment in Northeast Iowa is now $273--down from $281 two years ago.

This week ISU Extension is holding four Farmland Leasing and Land Value workshops in Northeast Iowa: 1:30 p.m. Tuesday at the Extension Office in Waukon, 1:30 p.m. Wednesday at the Extension Office in Cresco and 6:30 p.m. at the Extension Office in New Hampton and at 9:00 a.m. Thursday at NICC Calmar

The workshops are designed to answer questions that land owners and tenants have about farmland leasing and land values.
 
ISU Extension Farm & Agribusiness Management Specialist Melissa O'Rourke, a licensed attorney with extensive experience in working with farm, ranch and agribusiness interests, will cover a number of topics at the workshops.
 
"Due to the volatility of land and commodity markets, we have seen had increased inquiries regarding flexible cash lease methodologies," says O'Rourke.  "There are dozens of methods for putting together flexible cash lease arrangements, and we will work through several examples." 
 
55 percent of Iowa's farmland is owned by people over the age of 65, which is a major reason why farmland leasing continues to increase.
 
O'Rourke encourages farmland owners and producer-tenants to attend the workshops together and then sit down at the kitchen table to discuss their farm lease arrangements for the coming year.
 
A registration fee of $20 per person is charged to cover costs and includes a 90-page workbook.  Pre-registration is preferred by calling the local County Extension hosting the meeting.  Walk-ins may attend for a $25 fee at the door.