Purdue Releases Results of Farmland Value Survey
Purdue Releases Results of Farmland Value Survey
The annual Purdue Farmland Value and Cash Rent Survey was released recently, suggesting that farmland values across Indiana have risen to all-time highs in 2021. Statewide, top quality farmland averaged $9,785 per acre, up 14.1% from the same time last year. Top quality farmland here in West Central Indiana came in at $10,970 per acre, a 17.9% increase from last year. According to survey respondents, average ground increased 12.5% state-wide and 15.5% locally (to $9,382/acre), while poor farmland increased 12.1% state-wide and 17% locally (to $7,849/acre).
According to Purdue Ag Economist Dr. Todd Kuethe, “A unique combination of economic forces, including net farm income, expected income growth, crop and livestock prices, interest rates, exports, inflation, alternative investments, U.S. policy, and farmers’ liquidity, all played a major factor in the price increase we’re experiencing. Normally we’ll see positive price pressure from one or two market forces; however, this June, survey respondents indicated that all 10 forces we asked them about were putting upward pressure on land values.”
Cash rent prices of all land classes also increased around the state and in West Central Indiana, though not as significantly as land value. State-wide, top, average and poor farm ground averaged rent values of $269, $227, and $183 per acre, respectively. Locally, those figures came out to $302, $262, and $222, respectively. Ground is classified based on its productivity, with the indicator being average corn yield per acre. In our part of the state top ground is considered yield of 217 bushel/acre, average ground 193 bushel/acre, and poor ground 165 bushels per acre.
The full report is available for viewing at the Purdue Center for Commercial Ag website: https://ag.purdue.edu/commercialag/home/ 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 awestfal@purdue.edu.
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 on the website further. In addition to farmland values, you will also be able to access helpful information on ag policy, crop insurance, farm finance, business management, timely outlook webinars and more.
