AMES, Iowa (6/13/25)  – The Iowa State University Cash Rental Rates for Iowa 2025 Survey has been published, and the results make an interesting read for any land owner, tenant, or farm manager.

For the first time in six years, row crop rental rates decreased by almost 3%; however, rental rates on pasture and forage acres across the state remain steady to 3% higher for the ninth straight year. Record high beef prices, narrowing margins on forage acres, increasing competition for existing forage acres, and rising property taxes likely play a significant role in the strong forage rental rates faced by Iowa cattlemen and small ruminant producers.

Rental rates on pastures in Iowa have increased almost 20% over the last decade. For high productivity pastures with an estimated stocking rate of 2.5 or less acres per pair for the summer and adequate fence and water, the state average rate reported was $94/acre in 2025. Over the last ten years, rental rates bottomed in 2017 at $71/acre and recently topped at $95/acre in 2024.

For low-productivity pastures defined as pasture requiring more than 2.5 acres per pair, the 2025 state average rate reported was $61/acre.

Highest pasture rental rates were reported in USDA Crop Reporting District 3 (Northeast at $107/acre), District 5 (East Central at $105/acre), District 7 (Southwest at $103/acre), and District 4 (West Central at $102/acre). Lowest rates reported fell in District 2 (North Central at $81/acre) and District 8 (South Central at $81/acre). District 5 (Central) saw the largest reduction in average prices at $26/acre from 2024 to 2025 while District 9 (Southeast) saw the largest increase at $27/acre from 2024 to 2025.

Despite high carryover numbers in stored hay this spring, cash rent prices for established alfalfa hay acres continues to remain strong at an average of $206/acre. This equates to a 25% increase from $165/acre in 2016 and is up $6/acre from the 2024 state average reported at $200/acre.

While established grass hay acres have followed a similar trend as alfalfa, rental rates on oat acres harvested for forage production came in at $187/acre, down $11/acre from the previous year.

Data generated from this annual survey carried out by the ISU extension farm management team is reported on a statewide basis as well as by crop reporting district levels for forages. Although response rate varies, the report holds value as a year-to-year comparison. It is important to note these are not recommendations for rental rates but rather intended to serve as a starting point for negotiating prices, as multiple factors go into establishing a rental rate for each unique farm including productivity, drainage capacity, longevity of the lease, fence and water availability, and services performed by parties. You can download the entire Cash Rental Rates for Iowa 2025 Survey (FM1851).