Indiana farmland values in West Central Indiana stayed relatively steady, while average cash rents decreased slightly according to Purdue’s 2019 Farmland Value Survey. Survey respondents reported anywhere from a 3% decrease to 1% increase in land value per acre when compared with last year, depending on land quality. This brought the average land value to between approximately $6,318 and $9,178 per acre. Cash rents declined, largely in part to down markets and went from $195 to $284/acre, from poor to top farm ground. For the purposes of the survey, farm ground is divided into the categories: top, average, and poor based on the average corn yield on that ground, with the standards being 218 bu/ac, 186 bu/ac, 156 bu/ac), respectively. Statewide, farmland value experienced a decline, with top quality farmland decreasing by 5.3%, while average and poor ground increased slightly.
The report also features results from a survey on Indiana pastureland, hay ground, and on-farm grain storage rent, as well as a brief outlook to 2020 farmland values and cash rents. These values predict more stable to slight declines, highlighting more negatives than positives in the farmland market including large inventories and weak demand, despite so many unknowns right now regarding the 2019 crop. The full report is available for viewing at Purdue’s Center for Commercial Agriculture website at https://ag.purdue.edu/commercialag/ or if you would like a copy please call (219-984-5115) or stop by the Purdue Extension Office of White County located at the fairgrounds in Reynolds, or e-mail me at firstname.lastname@example.org.
The Purdue Ag Econ Report is a quarterly publication, which you can subscribe to by visiting the website above. For more information on ag economics, I would recommend clicking around some more on the Center for Commercial Ag website. In addition to farmland values, you will also be able to access helpful information on ag policy, crop insurance, farm finance, business management, timely webinars and more. One of the more popular new features on the website is the new “Crop Basis Tool,” which provides access to weekly historical and contemporaneous corn and soybean basis data for local markets throughout the eastern corn belt.