Iowa farmland ownership trends spark debate in gubernatorial race

A shift in agricultural land ownership in Iowa is becoming a central issue in the gubernatorial race. Candidates Zach Lahn and Rob Sand have identified corporate and out-of-state ownership as significant problems, proposing policies to tax local Iowans at lower rates than investor landowners.

However, agricultural researchers suggest the rise in formalized ownership—including LLCs, trusts, and corporations—is largely driven by succession planning. As farms grow larger, families use these structures to manage assets among multiple heirs. A 2022 land survey showed that 9% of Iowa farmland is held by LLCs, 6% by corporations, and 23% by trusts, a notable increase from 2002 levels.

Rabail Chandio, an assistant professor of economics at Iowa State University, noted that dividing large operations among many successors is difficult in the current economy. Additionally, nearly 40% of Iowa farmland is held for family or sentimental reasons, reflecting a trend toward maintaining land within families through formal legal entities.