SIOUX CITY, Iowa (KCAU)– With harvest season nearing, Siouxland farmers are already making plans for next year, and for many that means renting farmland.

With that in mind, Iowa State University Extension held a farmland leasing and management workshop.

In 2017, 53% of Iowa farmland was leased, or about 17 million acres. In 2022 the number increased to 58% with another million acres being rented.

Tom and Linda Bindner are from Marcus and lease farmland to their daughter.

“Land values it’s really hard to know except that land is a limited resource, we don’t make any more. So if you want to own land you have to inherit it or buy it. He wants it, I want it, depends on how bad he wants it vs how bad I want it, what the ultimate price will be,” said Tim and Linda Bindner, farmland renters from Marcus, Iowa.

According to an Iowa State University Extension survey, the average cost for an acre of Iowa farmland in 2019 was more than $7,000. In 2022 it jumped to roughly $12,000.

“Downside of the lease rate process, I guess one of the cons is you’re trying to determine what you’re gonna do 2024, we don’t even have the 23′ crop out of the field yet and we’re gonna make a decision on 24′,” said Wright.

ISU Extension specialist Gary Wright, tells me inflation, limited land supply, and high interest rates all contributed to land price hikes. That in turn, results in higher rent for tenants.

“When the land values go up, as the land owner, I need more return on my investment. I want more return on my investment. So that tends to slide the prices of the rent up a little,” said Linda.

“If you’re in a situation where you’re a tenant you gotta figure out is it a rent rate you can afford to pay, all things considered, increase or decrease you gotta be willing to be able to pay,” said Wright.

Bindner says events like the farmland leasing and management workshops held by ISU provide significant help for managing their property.

“We not only learn what Iowa State University has offered us and what Gary has to share with us, but we also learn from the people we share a table with. Who are oh we are doing this, and we’re doing this, and this has really worked well for us and this hasn’t worked so well,” said Linda.

Wright told me he believes farmland prices have already hit their peak and may soon be on the decline.