What an adventure 2019 has been. After many unexpected events during the first half of the year, I’m hoping for something more normal during the second half of 2019. Who would have thought corn and soybean planting would extend into late June?
News reports about the farmland market during the first half of the year called attention to the ability of top quality farmland to retain its value, while lower quality land seemed to be weakening But across all farmland qualities the limited supply of farmland for sale was pointed to as the primary reason for relative stability in farmland values. What is the situation and outlook in Indiana now?
Statewide the 2019 Purdue Farmland Value Survey indicates farmland values moved lower. June year-to-year farmland value comparisons indicate top quality farmland declined 5.3%, average quality farmland declined 0.9%, and the poor quality farm-land decline was so small it resulted in a 0.0% change (Table 1).
The change in top quality farmland for June 2018 to December 2018 accounted for the largest part of the farmland value change. Average and poor quality farmland values in this period had small increases, a 1.0% increase for average quality farmland and a 3.3% increase for poor quality farmland. During the December 2018 to June 2019 period, top quality farmland continued to decline. Declines in value for average and poor quality land were large enough to offset the gains in the first six months. Average quality farmland declined 1.8% and poor quality farmland declined 3.2%. For the June 2018 to June 2019 period, top quality farmland declined $456 per acre, average quality farmland declined $61 per acre and poor quality farmland declined by $2 per acre.
The full report is available on the Purdue Agricultural Economics website Purdue Agricultural Economics Report "Cash Rents"