Business : New Report Unpacks Foreign Interest and Land Leases in Iowa Farmland

Iowa State University economist shares latest trends on state and national land ownership

As foreign interest in U.S. farmland has grown in recent years, new research-backed insights are available in the July edition of Ag Decision Maker for landowners to stay informed on this evolving topic.

The article, "Foreign-held farmland in the United States and Iowa: scale, use, and ownership trends," provides timely updates not only on foreign interest but also on ownership and lease agreements across Iowa and the U.S.

Rabail Chandio, assistant professor and extension economist at Iowa State University and author of the article, said the information is relevant for all Iowa landowners.

"If you own farmland in Iowa, or are thinking about buying, selling or leasing, it's smart to understand who else has an interest in that land," Chandio said. "This information helps give Iowa producers and landowners a clearer picture of how much land is actually foreign-held, what it's being used for and what kinds of ownership structures are involved."

Due to Iowa's strict regulations on corporate and foreign ownership of agricultural land, foreign-owned acreage in Iowa is minimal (less than 2%), making leases the primary form of land interest in the state.

The latest findings also indicate that the majority of these leases are energy-related leases, particularly for wind turbines. This land is often still actively farmed, while energy companies lease the space for turbine infrastructure.

According to the article, foreign-held agricultural land in the U.S. has grown by 2.6 million acres per year since 2017, up by about 600,000 acres annually between 2012-2017. Still, this growth is primarily tied to energy leases rather than outright land sales.

The top Iowa counties with foreign interest in 2023, in order of total foreign acres, are: Poweshiek, Dickinson, Mitchell, Washington, Page, Davis, Pocahontas, Webster, Cherokee and Taylor counties.

While foreign ownership is low in Iowa due to strong legal protections, foreign leasing activity - especially for renewable energy - continues to rise.

For more information, read the full report or contact Rabail Chandio at 515-294-6181 or rchandio@iastate.edu.