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.