More than half of Iowa farmland is rented. In some Iowa locations, as much as 70 percent of the land is farmed by farmers who don’t own the land.
In Northeast Iowa, the result is many conversations and negotiations between farmland owners and producer-tenants to determine what makes sense for farmland leases and cash rental rates – both fixed rent and flexible arrangements. Strong landlord/tenant relationships are important for the long-term viability of Iowa’s farming communities.
These are just a few reasons why Iowa State University Extension and Outreach offers workshops designed to answer questions that land owners and tenants have about farmland leasing and land management issues.
These workshops will be held across northeast Iowa counties starting July 29 through August 15.
Melissa O’Rourke, ISU Extension Farm & Agribusiness Management Specialist will present a wide range of topics related to farmland leasing and management.
O’Rourke is a licensed attorney with extensive experience in working with farm, ranch and agribusiness interests.
“Year after year, I receive numerous contacts from persons who have questions about farmland values and rental rates,” says O’Rourke.
“The interest in and conversations about farm leasing arrangements continues to grow, and 2019 is no different,” O’Rourke noted. “We always have good attendance and discussion at these meetings.”
“Due to the volatility of commodity and land markets, we have seen had increased inquiries regarding both fixed and 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.”
O’Rourke also noted that ISU research indicates that on average, cash rent values across the state have declined for several years. The most recent ISU cash rent survey showed steady rents to slight declines in Iowa.
O’Rourke has also seen that farmland owners and producer-tenants need to have more conversation about the cost of inputs to put in the crop and reasonable expectations on profit margins.
“ISU Extension and Outreach has good resources for people to use to gain an understanding of how crop input costs can be considered in setting cash lease rates, and I’ll show how those can be used.”
O’Rourke also noted the increasing age of farmland owners. “ISU Extension research indicates that the average age of farmland owners continues to rise,” stated O’Rourke. “Fifty-five percent of Iowa’s farmland is owned by people over the age of 65, while 28 percent of the land is owned by individuals over age 75. We find that children and surviving spouses may be less likely to continue operating the farm themselves. That’s a major reason why farmland leasing continues to increase.”
O’Rourke encourages anyone with an interest in farmland rental rates to attend these meetings. “Both farmland owners and producer-tenants should attend. In fact, the ideal situation is for these folks to attend together and then sit down at the kitchen table to discuss their farm lease arrangements for the coming year.”
Workshop attendees will receive a comprehensive workbook packed with information about land values, leasing and different types of farm lease arrangements. “Everyone should leave with a heightened understanding of farmland leasing and land management issues.”
A registration fee of $20 per person is charged to cover costs and includes a 100-page workbook. Pre-registration is preferred by calling the local County Extension office hosting the meeting. Walk-ins may attend for a $25 fee at the door.
More information about this and other farmland leasing meetings in Iowa can be found at ISU Extension’s Ag Decision Maker website: http://www.extension.iastate.edu/agdm
Area meeting locations, dates, times and contact phone numbers include the following:
Monday, July 29
Independence – Buchanan County – 1:00 pm
Heartland Acres Center, 2600 Swan Lake Blvd *Sponsored by BankIowa – $8/10 fee
Tuesday, July 30
Decorah – Winneshiek County – 1:00 pm
Bank of the West, 120 W Water St
Cresco – Howard County – 6:00 pm
ISU Extension — 132—1st Ave W
Wednesday, July 31
Waukon – Allamakee County – 1:30 pm
ISU Extension, 218 7th Ave SE, Suite 102
Thursday, August 1
Fayette – Fayette County – 9:00 am
ISU Extension, 218 S Main St
New Hampton – Chickasaw County – 1:00 pm
ISU Extension, 104 E Main St
Tuesday, August 6
Epworth – Dubuque County – 1:00 pm
Epworth City Hall—191 Jacoby Drive E
Manchester – Delaware County – 6:30 pm
Fairgrounds Community Center, 200 E Acers St
Thursday, August 8
Charles City – Floyd County – 9:00 am
ISU Extension, 112 N Main St
Tripoli – Bremer County – 1:00 pm
ISU Extension, 720 7th Ave SW
Tuesday, August 13
Waterloo – Black Hawk County – 1:00 pm
Hawkeye Community College, 1501 E Orange Rd, Tama Hall-Room 102
Wednesday, August 14
Elkader – Clayton County – 6:00 pm
Freedom Bank, 210 S Main St
Thursday, August 15
Osage – Mitchell County – 1:00 pm
ISU Extension, 315 Main St
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