2005-08 PAER: Farmland Values Survey 2005
August 15, 2005
- Indiana Farmland Values & Cash Rents Jump Upward
Articles in this Publication:
2005 Indiana Farmland Values & Cash Rents Jump Upward
Craig L. Dobbins, Professor; Kim Cook, Research Assistant
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READ MOREFarmland Prices Increase Despite Downward Pressure
Indiana farmland prices reached record highs in 2024, with top-quality land averaging $14,392 per acre, a 4.8% increase from 2023, according to the Purdue Farmland Value and Cash Rent Survey. Regional variations and market forces like high interest rates and low land supply influenced the market, while long-term projections suggest continued modest growth. Transition land saw a significant 21.6% rise, while recreational land values dipped slightly.
READ MORETrends in Farmland Price to Rent Ratios in Indiana, 2024
Farmland prices in west central Indiana increased slightly in 2024 (0.2%) and are 19.7% above the previous peak in 2014. Compared to the farmland price in 2007, current farmland prices in west central Indiana are 187% higher. Farmland prices are influenced by many factors, including net income, growth in earnings, crop and livestock prices, interest rates, alternative investment returns, inflation, liquidity, agricultural policy, and energy policy. Cash rent, which is influenced by net return to land, along with interest rates, is often referred to as a fundamental factor impacting farmland prices.
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