As farmers making planting preparations, cash rent negotiations are also underway in some areas.
Jim Rothermich, a land appraiser for Iowa Appraisal, says cash rent prices vary this year, with the largest increases in the cash rent auction market. If leases are negotiated via auction, Rothermich is seeing prices drawing double-, even triple-digit gains.
The three-year leases that are privately negotiated, are 5% to 10% higher. And then if it goes to cash or in auction, in Iowa anywhere from 25% to 70% increase in cash rents from the previous rent. In Illinois 90% to 120% increase from the previous rent.
While Iowa has been the hotspot for record farmland prices, Rothermich points out Illinois is leading the way for record cash rent.
As more landowners opt to privately negotiate terms, but both Baumann and Rothermich think cash rent auctions could continue to gain traction across the U.S.