Cash rent per acre up over last year, but economic challenges could influence the future
Despite another difficult year in agriculture, cash rents still posted an increase of about 1.4%, according to this year’s Cash Rental Rates for Iowa 2020 Survey, released earlier this month.
Rates across the state averaged $222 per acre, compared to $219 per acre in 2019, the fourth year of relatively stable rates, but at levels about 18% lower than the historical peak reached in 2013, of $270 per acre.
“It’s surprising for me to see that cash rents are pretty stable and have not gone down,” said Alejandro Plastina, associate professor and extension economist at Iowa State University. “And that’s likely a reflection that government programs last year were injecting enough liquidity.”