Is farmland really a “non-performing” asset? The numbers say otherwise.
A common misconception is that land loses value or fails to generate meaningful income. In reality, farmland—especially in Iowa—produces substantial annual revenue through rental income.
According to industry data, approximately 60% of Iowa farmland is leased to tenant operators. With an estimated 30 million acres of farmland statewide, that means around 18 million acres are rented each year.
Farmland Fact Video
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What Does Iowa Farmland Earn?
Using a conservative average cash rent of $250 per acre, leased farmland in Iowa generates approximately:
- 18 million rented acres
- $250 average cash rent per acre
- $4.5 billion in annual rental income
This income is produced year after year while the underlying land remains a tangible, appreciating asset.
Why This Matters to Landowners
Rental income plays a major role in:
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Supporting farmland values
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Providing dependable annual returns
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Making land attractive to investors and families
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Preserving ownership while avoiding day-to-day operations
For many owners, leasing farmland allows them to generate income while maintaining long-term control of a hard asset.
The Bigger Takeaway
Farmland doesn’t just hold value—it produces it. With billions of dollars in annual rental income generated statewide, Iowa farmland continues to demonstrate why it remains one of the most durable and productive real asset classes available.
This post is part of our Farmland Facts series, where we share clear, practical insights that help landowners, buyers, and investors better understand what drives farmland value and land ownership decisions.
