Cash rent paid to Iowa landlords in 2020 averaged $230 per acre for nonirrigated cropland, according to USDA’s annual survey released in August. That’s unchanged from 2019. Irrigated cropland rent averaged $238 per acre, up $3 from last year. Pasture rented for cash in 2020 averaged $54 per acre, down $5 from 2019.
Grundy County has the highest cash rent for nonirrigated cropland at $272 per acre, followed by Bremer County at $266 per acre. Scott, Sioux and Delaware round out the top five. Lucas County at $135 per acre has the lowest average cash rent for nonirrigated cropland. Osceola and Sioux are tied for the highest pasture cash rent at $90 per acre, followed by Mills County at $85 per acre.
The complete USDA survey report for all counties can be found at the publications tab on USDA website nass.usda.gov.
Farm income expected to rise
USDA’s latest projection shows U.S. farm income is expected to rise 23% in 2020 to the highest level in seven years, thanks to a sharp increase in government payments. USDA is projecting this year’s net farm income at $102.7 billion, compared to $83 billion in 2019.
The big difference is a jump in government payments to farmers, including USDA’s special Coronavirus Food Assistance Program and the Small Business Administration’s Paycheck Protection Program. Those payments are expected to total $37.2 billion in 2020, a 66% increase over last year and roughly three times what farmers were getting paid on an annual basis prior to 2018.
Cash receipts from crops and livestock are forecast to dip 3%, partially offset by a 1% decline in out-of-pocket expenses. Crop farmers are expected to see their income increase this year due to CFAP and other government payments, but livestock and poultry producers are expected to have lower net income, even with federal aid.
Net income is expected to increase 17% for soybeans and nearly 7% for corn. But earnings are projected 36% lower for hogs, 21% lower for cattle and 10% lower for dairy.Source: USDA, which is solely responsible for the information provided and is wholly owned by the source. Informa Business Media and all its subsidiaries are not responsible for any of the content contained in this information asset.