For all of those interested, the most highly requested resource from Purdue University has been updated. That resources is the Purdue University Farmland Value Survey data. To no surprise, land values decreased across Indiana. Declines were calculated to range from 8.2% to 8.7%. Declines of this magnitude have not been seen since the mid-80s.
As a whole, the 2016 Purdue Farmland Value Survey found that the value of all qualities of farmland declined in Indiana. The average value of bare Indiana cropland ranged from $5,353 per acre for poor quality land to $8,508 per acre for top quality land. That is an 8.2% to 8.7% decrease in value since June of 2015. The average corn yield for top quality land was 198 bushels per acre and 134 bushels per acre for poor quality land.
The 2016 survey did indicate that cash rent was also going down throughout the state. Cash rents range between $157 per acre for poor quality land and $257 per acre for top quality land. Cash rents decreased by 10.3% for poor quality land and 9.8% for top quality land since June of 2015.
The value for farmland moving out of agriculture (transition land) decreased this year. The surveyed revealed that there was an 11.2% decrease in the average value of transition land since June of 2015. The average value of transition land in June 2016 was $10,506 per acre. The average value of recreational land also dropped significantly with a decline of 24.1% in 2016. It is important to note that transition and recreational land values are quite volatile and have a wide range of values.
For individuals in our area it is probably of more importance to look at the results for the West Central Region. The West Central Region (consisting of Benton, Carroll, Fountain, Montgomery, Parke, Putnam, Tippecanoe, Vermillion, Warren, and White Counties), had cropland values that ranged from $6,341 per acre for poor quality land and $9,808 per acre for top quality land. Cash rents for the West Central Region varied from $193 per acre for poor quality land to $296 per acre for top quality land (average quality land was $241 per acre). For the West Central Region, cropland values and cash rent values decreased from 2015 to 2016.
Producers may also want look at values for the Southwest Region due to the similarities in topography and soil productivity. The Southwest Region (consisting of Clay, Daviess, Dubois, Gibson, Greene, Knox, Martin, Owen, Pike, Posey, Spencer, Sullivan, Vanderburgh, Vigo, and Warrick Counties), had cropland values that ranged from $4,657 per acre for poor quality land and $9,109 per acre for top quality land. Cash rents for the Southwest Region varied from $149 per acre for poor quality land to $273 per acre for top quality land (average quality land was $210 per acre). For the Southwest Region, cropland values and cash rent values decreased from 2015 to 2016, except cash rent for poor quality land stayed the same.
Please realize that the Purdue University Farmland Value Survey data is provided to landlords and tenants as a starting point when negotiating their rental agreements. The final rental amount will need to be adjusted based on numerous items include the size of the field, drainage, soil fertility, ease of access for farm equipment, and much more. To obtain your own copy of the PAER report, contact your local Extension Office or go to: http://www.agecon.purdue.edu/extension/pubs/paer