The stories about high cash rents continue. A farmer in west-central Iowa reported he just accepted a $550/acre bid on his 330-acre farm. The rent will be fully paid in advance March 1. The agreement is for one year. The farmer asked for sealed bids and the next closest bid was $350/acre.
The total rent this farmer will receive is $181, 500. This amount will be more money than what the farmer paid for all his land back in the ’60s and early ’70s.
Also, the farmer offering the highest bid lives about 30 miles away and has not farmed this land.
This is not the highest rent seen by Jerry Warner, chief management officer, Farmers National Company. He said he’s heard of $600 cash rents in Iowa. The high rents are not surprising with the high profitability farmers are currently experiencing from their crop operations.