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Iowa Farmland Leasing Meetings Resonate

Agricultural Economics & Community Development

Kelvin Leibold
Farm and Ag Business Management Specialist
Iowa State University Extension and Outreach
Iowa Falls

Abstract

 

¹Leibold, K., ²Brown, C., ³Christensen, T., 4Drollette, R., 5Hating, P., 6Johanns, A., 7O’Rourke, M., 8Stevens, A., ?Wright, Gary 

¹Farm Management Specialist, Iowa State University Extension and Outreach, kleibold@iastate.edu;

²Farm Mgmt.; ISU, ³Farm Mgmt., ISU; 4 Farm Mgmt., ISU; 5Farm Mgmt., ISU; 6 Farm Mgmt., ISU;  7Farm Mgmt., ISU; 8Farm Mgmt., ISU; ?Farm Mgmt., ISU.

 

ABSTRACT

Purpose: Over half of Iowa farmland is owned by someone who does not currently farm, of which 34% is owned by those with no farming experience, and the remaining 24% is owned by retired farmers (Zhang, 2017.) Both landowners and tenants look to the Iowa State University Extension and Outreach Farm Management Team to annually provide un-biased leasing information impacting 16.8 million acres in Iowa.  Method: In July-August 2021, Farmland Leasing Meetings were offered across Iowa to address questions from landowners, tenants, and others. Planning for the 2-hour meetings began months in advance. A 100-page leasing guidebook was prepared for attendees and meetings sites were organized with county extension professionals. With uncertainty regarding COVID-19, programs were offered both in-person and virtually. Topics included land values, cash rent trends, rental rate determination, legal updates, carbon credits, cost of production, land improvements, water quality, landowner-tenant communication, and annual reports. Results: The team held 77 in-person meetings and 2 virtual meetings reaching 1,380 individuals from 23 states. Of the 1,380 participants, 738 were invited to complete an online survey after the meetings. There were 297 responses for a 40.24% response rate. Three key leaning objectives were assessed using a Likert scale: 92.49% ‘somewhat agreed’ or ‘strongly agreed’ their knowledge of leasing trends and issues increased; 91.16% ‘somewhat agreed’ or ‘strongly agreed’ they can communicate better with their tenant or landowner; and 86.01% ‘somewhat agreed’ or ‘strongly agreed’ they are more confident to make changes needed. Top participant goals for applying what they learned were assessed by multiple choice: 51% selected ‘increase rent;’ 33% selected ‘increase the information shared between leasing parties (annual reports;)’ 32% selected ‘improve communication with other parties involved in leasing arrangements;’ 23% selected ‘send termination notice to end the 2021 lease terms;’ 18% selected ‘discuss and/or implement conservation strategies.’ Discussion: The Farmland Leasing meetings resonated with Iowa and out-of-state landowners. Meetings were effective in extending knowledge and supporting good decision-making based on un-biased information. When landowners and tenants improve leasing agreements, they can create better economic outcomes, conserve soil and water, and minimize communication stress in the farming community.  

Authors: Kelvin Leibold
  1. Kelvin Leibold Farm and Ag Business Management Specialist, Iowa State University, Iowa, 50126