Owning farmland in Iowa is a great investment, but if you’re not farming it yourself, your relationship with your farm tenant is absolutely essential. Whether you live five miles or five states away, how well you work with the person farming your ground can affect everything from rental income to long-term land value.
Whether you’re brand new to owning farmland or have inherited property from family, this guide breaks down what you need to know to build a strong, mutually beneficial relationship with your farm tenant.
Why Good Landowner-Tenant Relationships Matter
Many Iowa farmland owners—especially those who live out of state—lease their land to a local farmer. And for good reason. A trusted tenant takes care of day-to-day operations, provides income through rent, and maintains the health and productivity of your land.
Here’s what a solid partnership can offer:
- Reliable income: A dependable tenant is more likely to pay on time and renew the lease year after year.
- Better land care: Tenants who feel respected and supported are more likely to invest in conservation and soil health
- Less hassle: With fewer misunderstandings and clearer communication, you avoid the headaches of disputes or legal issues.
Think of it as a business partnership: the stronger the relationship, the better the results.
Here are 6 ways to build a partnership that lasts with your tenant farmer:
1. Start with a Clearly Written Lease
A handshake agreement might’ve worked for your grandparents, but today, a written lease is a must. It protects both parties and sets expectations upfront, which is especially important if you’re not nearby to keep an eye on things.
A well-crafted lease should cover:
- Rent amount and payment schedule (typically March and November in Iowa)
- Crop rotation expectations
- Responsibility for fertilizer, chemicals, or maintenance (like fencing or tiling)
- Who handles government programs like CRP (Conservation Reserve Program)
Iowa State University Extension offers excellent lease templates and resources you can customize to your specific situation.
2. Be Fair & Transparent About Rent
Raising the rent? Considering switching to a flex lease? Always be upfront and share your reasoning.
Use tools like Iowa’s Cash Rent Survey or crop cost estimates from ISU Extension to guide your decisions. Your tenant will appreciate seeing that you’re basing changes on real numbers, not just gut feeling.
Also, consider different lease structures:
Cash rent
You don’t share in the risk or reward, but a cash rent lease is a simple, fixed income-based structure.
Crop share
With a crop share lease, you receive a portion of the crop, which is a more involved agreement, but is potentially more profitable than a cash rent lease.
Flexible lease
A flexible lease adjusts based on crop yields or market prices, which is a fair middle ground for both the landowner and tenant.
Custom farming
For custom farming, you hire a local operator to farm your land for a set fee per acre. As the landowner, you take on the input costs and receive 100% of the crop revenue. You have more control (and potentially more income), but it carries more risk and requires closer management. Custom farming is something many landowners partner with a farm manager to handle.
3. Keep the Lines of Communication Open
One of the biggest mistakes landowners make is only talking to their tenant once a year, usually around rent time. Regular communication (even just a couple times a year) builds trust and can prevent small issues from turning into big ones.
Here are a few ideas:
- Schedule a spring check-in to talk about planting plans.
- Ask for a quick harvest summary in the fall: yield results, weather challenges, etc.
- If you’re an absentee landowner, even an annual phone call or email can make a big difference.
According to ISU Ag Decision Maker, strong communication is one of the top indicators of long-term lease success. Don’t underestimate the power of a friendly conversation.
5. Handle Issues Professionally
If something goes wrong (missed rent, unexpected changes, or communication breakdowns), try to resolve it respectfully and with your lease in hand.
Here are some tips:
- Start with a phone call, because tone matters.
- Follow up in writing to document the issue.
- Avoid making big changes mid-season.
- If needed, involve a neutral third party (a farm manager or Extension agent can help).
Even the best relationships hit bumps now and then. Staying calm and professional helps maintain the long-term health of the partnership.
6. Add a Farm Manager to the Team
If you don’t live near your farm in Iowa or simply don’t have the time, background, or desire to manage the details of the lease and tenant relationship, hiring a professional farm manager can make a big difference. Think of it as adding a knowledgeable partner who can look after your land, keep you informed, and make sure the right decisions are being made throughout the year.
A good farm manager can help:
- Find and vet qualified tenants
- Draft and negotiate fair lease agreements
- Coordinate communication with your tenant, especially around planting, harvest, and rent schedules
- Conduct on-site inspections to monitor field conditions and improvements
- Oversee conservation practices, CRP compliance, and cost-share opportunities
- Provide regular updates with crop and market reports, financial summaries, and recommendations
If you’re a landowner who lives out of state or inherited farmland in Iowa, South Dakota, Nebraska, or Minnesota, this kind of support offers peace of mind, especially if you’re not familiar with the ins and outs of agricultural operations.
Good Partnerships = Good Outcomes
At the end of the day, owning South Dakota or Iowa farmland is about more than collecting a check. It’s about preserving the land, supporting local agriculture, and building a relationship that works for both you and your tenant.
Clear leases, fair communication, and shared goals are the building blocks of a strong landowner-tenant partnership.
If you’re looking for help managing your farm, reviewing a lease, or finding a great tenant, our team is here to help. We work with landowners across Iowa to make sure their land is productive, profitable, and well cared for, year after year.
Partner with Stalcup
At Stalcup, we’ve helped landowners manage their farms for over 75 years. Based right here in northwest Iowa, our team understands the local markets, tenant dynamics, and stewardship goals that matter most to landowners.
Whether you’re working with a longtime tenant or need help getting started, we act as your advocate on the ground, balancing profitability with long-term land care.
Even if you’re comfortable managing things yourself, a professional farm manager can be a valuable resource for lease reviews, annual crop evaluations, or transitioning to a new tenant.
Not sure if farm management is right for you? A consultation can help you decide what level of service would support your goals.
Contact us today and let’s talk.
