SIOUX CITY, Iowa (KCAU) — Iowa farmers are experiencing a rise in cost, specifically to rent the land they farm on at its highest since 2013.
According to the Iowa State University Extension, farmers are seeing a rise in cash rental rates at an average of $10 per acre.
“What we’ve seen recently, and it’s been a really recent change over is we’ve had these cash rental rates going up because we’ve seen the value of corn and soybeans going up rapidly really just since the end of 2020,” said Sam Funk, who is part of the Iowa Farm Bureau.
“Cash rental rates have always been on the uptick just partly because we’re able to produce more bushels per acre for both soybeans and corn so you’re going to have a higher rate because of that,” said Jeff Jorgenson, a Siouxland Soybean farmer.
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And one of the biggest concerns for farmers is staying profitable with uncertainty of future commodity prices.
“You’re also going to wonder what’s going to happen with the duration of those higher prices. Will China continue to buy more corn that is frankly higher than they’ve had for several years. Its records for the amount of corn we’re sending from the United States to China,” said Funk.
“Cash rent is probably one of the biggest concerns because it probably is of the inputs that we put in per acre that probably is the highest cost, is cash rental rate. Or if you own land, making your land payment, that is the highest input that you have so it’s definitely concerning,” said Jorgenson.
With the recent 5% increase in rent, Iowa’s total rental price is now up to $232 per acre. According to Business Insider, the price of corn was as low as $3 in 2020 and now trades at roughly $7.