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ISU specialist expects steady cash rents in 2018

Even with lower crop prices, Iowa State University farm management specialist Steve Johnson expects mostly steady cash rents in 2018.

“What we’re seeing in Iowa is steady land values—and land values are high correlated with cash rental rates, at least they have been for the last 15 years. So I’m anticipating steady cash rents for 2018,” Johnson says.

Johnson says while some farmers may be forced to give up rented land, there will be other farmers waiting to scoop it up.

“There’s a group of farmers—probably 20 to 30 percent in Iowa—that are in pretty good financial shape. And I know some of them are still looking for land.”

Cash rents in some parts of Iowa may decline slightly, Johnson says, especially in areas impacted by drought and those with poorer soils.

AUDIO: Steve Johnson