Iowa farmland is in high demand, which isn’t surprising considering we’re ranked first in the country for the production of corn, eggs, and pigs. In 2022, the Census of Agriculture reported more than 90 percent of Iowa farms are family-owned; It needs to stay that way.

Passing farms down from generation to generation benefits not just those profiting from the land but also local businesses. Family farming helps improve rural economies and creates allies for other local businesses to depend on.

In Iowa’s history, there have been more than 20,000 recognized Century Farms and about 1,500 Heritage Farms. Heritage Farms are family lands passed down for more than 150 years, while Century Farms reach that status after staying in the family for over 100 years.

The lack of Heritage Farms, not just in Iowa but across the country, is due to an aging farmer population and fewer young people stepping in to take over. There are also heavy financial burdens, from inheritance taxes to the cost of modernizing farming equipment.

According to the U.S. Department of Agriculture, small family farms are the most financially vulnerable. Though they make up 88 percent of all farms in the United States, they only account for 19 percent of total value production.

One reason for this is that small farms require the same equipment and facilities as large farms, just on a smaller scale. This means smaller farms have similar budgets for equipment and maintenance as farms bringing in double the profit.

Another challenge small family farms face is the increasing demand for farmland. It’s hard to turn down someone offering $13,000 an acre — more than many farmers would make in 10 years of farming.

The best way to have a successful farm in today’s economy is to produce a variety of staple crops, such as corn and soybeans, and adopt diverse agricultural practices.

The corn grown in Iowa is different from what’s grown in Illinois and surrounding states. Iowa corn is often used for feed and ethanol, and true Iowans know we don’t eat the corn that’s grown here. The average price for a bushel of Iowa corn in 2024 went for $4.15.

Crop rotation is a key method in Iowa, which involves alternating what crops are grown on certain parts of the land. Soybeans are the most commonly rotated crop because of their ability to replenish nitrogen levels in soil. This practice increases yields, promotes soil growth, and reduces the likelihood of pest infestations.

Even though the majority of Iowa farms produce only soybeans and corn, with 94 percent of Iowa farmland being used to grow those two crops, there is still a market for other crops and vegetables. Iowa farmers also grow oats, wheat, hay, and a variety of other vegetables to stay competitive with neighboring farms.

Agritourism is another popular approach thought to increase family farm profits. Examples include petting zoos, corn mazes, hayrides, pumpkin and apple picking, and Christmas tree farms.

Some farms host local farmers markets or allow people to hike the grounds. Others create agricultural museums or build lodging for visitors to rent. Agritourism, simply put, combines tourism and agriculture into a commercial business that farmers can profit from.

Unfortunately, even in farms that have a lot of those amenities already in place, there are still additional costs attached to starting an agritourism business. Bathrooms and sometimes visitor centers need to be built on the property, and there is also liability insurance, marketing costs, and local regulations that need to be put in place.

The average cost for a family farm to create a thriving agritourism business on their property ranges from a couple thousand dollars to tens of thousands of dollars, depending on the size of the land.

The agritourism industry is expected to grow exponentially in the next few years, potentially reaching $141 billion by 2030.

Farms that embrace agritourism diversify their income and gain another reliable source of profit aside from crops. Incorporating agritourism into family farms reduces the risk of foreclosure due to a bad yield.

There are programs in place for farmers that protect their farms even if they have a bad year of crop production. Crop insurance helps farmers across the country by offering aid to make up for lost revenue due to unforeseen circumstances like disease, infestation, adverse weather, or other risk factors.

However, not every farmer qualifies for this type of insurance coverage. Farmers must have insurable interest in a specific crop and meet the USDA Risk Management Agency’s eligibility requirements. A farmer’s previous crop yields could also be a factor in what kind of coverage they are eligible for.

Due to the fact that Iowa farmland has been in high demand in recent years, investment groups are buying up the land in hopes of making a profit.

Some farmers are in favor of partnerships with wealthy landowners to increase access to farmland that those without farming connections wouldn’t have previously had. The most recent Farm Bill, which was passed in 2018 and extends to the end of this year, assists farmers in entering new industries by aiding access to loans, providing funding for research and development, and helping diminish risk levels through crop insurance programs.

In 2023, Joe Burrow, Blake Griffin, and around 20 other athletes purchased a 104-acre Iowa farm for $5 million, aiming to profit by leasing the land to local farmers. These athletes are a part of an investment group called Patricof Co, which plans to buy more farms across the country.

The land will be run by existing farmers to grow cash crops, and the athletes will receive a single digit percentage return on their investment annually. Though the family and farmers will still make a large net profit, there are other issues that come with selling farmland to investment groups.

Investment groups and outside entities buying up Iowa farmland can be problematic for family farms. When a family farm is bought out, sometimes the family is kept on to work the lands, and the only change is the farmers give a small percentage of profits to the new owners. Other times, the new owner of the land wants to outsource cheaper labor, discarding the previous family and their traditions.

Selling Iowa farms to investment companies can also drive up land prices and displace smaller family farms, which negatively impacts the community and other local businesses.

Keeping a farm in the family benefits the community and ensures increased crop production. The trend of big businesses buying out Iowa farmland to build strip malls and hotels needs to end.

Iowa has always been — and should continue to be — a farming state. Family farms are the backbone of our country, and more people need to step up to carry on their family’s legacy.