Thomas Hertel, Professor; Alejandro Nin, Graduate Research Assistant; Allan Rae, Professor at Massey University; and Simeon Ehui, Economist with the International Livestock Research Institute
Jennifer Vandeburg, Research Associate; Joan Fulton, Associate Professor; Susan Hine, Assistant Professor, Department of Agricultural and Resource Economics, Colorado State University; and Kevin McNamara, Professor
Jesse J. Richardson Jr., Attorney and Assistant Professor in the Department of Urban Affairs and Planning at Virginia Tech in Blacksburg, Virginia; Julie Farris, Member Indiana Bar; and Gerald A. Harrison, Professor and Extension Economist*
Indiana farmland values hit new record highs in 2025 despite regional declines, with development demand and recreational land gains offsetting downward pressure from lower farm incomes, weaker crop prices, and interest rates.
Analysis of the Purdue Farmland Values and Cash Rents Survey shows price expectations often seem inaccurate because they’re assumed to be averages—when many respondents report the most likely price. Viewed this way, expectations are rational in most cases, making them more useful for producers and investors.
Indiana farmland offers returns above bonds but below equities, with less volatility than stocks. Adding cash rents boosts returns, and its low correlation with equities and inverse correlation with bonds make it a strong portfolio diversifier.