With uncertainty surrounding the agricultural economy heading into 2027, Iowa State University Extension and Outreach is encouraging both landowners and tenants to focus on one thing that can make any lease arrangement stronger: communication.
That’s one of the key messages behind the upcoming Farmland Leasing Arrangements Workshop, scheduled for Wednesday, August 13, at 9:30 a.m. at the Demco Community Building in Boyden. The program will cover topics including cash rent negotiations, farmland values, legal updates, succession planning, and lease agreements while helping participants better understand the leasing process.
Tim Christensen, farm management specialist with Iowa State University Extension and Outreach, says the workshop is designed to bring both landowners and tenants to the table.
“It’s just a workshop where we work with landowners and tenants alike and talk through the process of how to write up a good cash rent, how to have good relations between the landowner and tenant, some of the legal things that go along that people need to be aware of.”
Uncertainty Ahead of 2027
Christensen says one of the biggest challenges facing agriculture today is the uncertainty surrounding production costs and profitability.
“The number one thing is input costs. We’re still kind of with everything going on globally where we’re going to be on fertilizer prices, what the markets are going to do, what the profitability is going to look like for 2027 is probably as uncertain now as it ever has been.”
He says geopolitical issues, supply chain disruptions affecting fertilizer availability, and questions surrounding this year’s crop all contribute to that uncertainty.
While statewide cash rental rates have remained relatively stable, Christensen says northwest Iowa continues to stand out.
He says land values have largely leveled off, but demand for farmland remains strong in the region. Northwest Iowa was one of the few areas of the state to see a slight increase in cash rental rates over the past year, driven in part by strong demand and access to alternative fertilizer sources such as manure.
Communication is Key
Beyond economics, Christensen says one of the workshop’s biggest focuses is helping landowners and tenants communicate more effectively.
“We spend a lot of time in the workshop just on communication and making sure we have good open communication lines. That allows us to align the goals between the landowner and the tenant and make sure they’re talking about what the landowner is wanting to do with the farm in the future and how they want it farmed.”
He says one of the most common mistakes he sees is landowners not fully understanding the management side of farming, making it more difficult to work alongside their tenants in making informed decisions.
Preparing the Next Generation
Succession planning is another major topic. Christensen says many of the calls he receives come from people who have recently inherited farmland but have little experience managing lease agreements.
“We really stress the importance of making sure that the heirs of your property are educated and can seamlessly take over that and make good decisions for the farm. Back to the communication, just making sure that if you’re going to leave land to somebody, that you’re also leaving them the knowledge to be able to manage that land properly.”
Ultimately, Christensen says communication remains the foundation of a successful lease.
“Communication is the number one thing in my mind with land leasing, anything. Just opening those lines of communication and making sure that we’re working with somebody that we can communicate with. That typically solves most of the problems that we have when we go into a leasing argument.”
Workshop Details
The August 13 workshop will also include a discussion on land values, market outlooks, methods for determining fair rental rates, legal issues affecting landowners and tenants, and the role of soil sampling in lease agreements. Participants will receive a 100-page workbook containing lease resources, sample agreements, surveys, and other reference materials. Registration is $25 per person, with preregistration encouraged. Register here.
