2020-12 PAER: Agricultural Outlook for 2021

December 9, 2020

Welcome to our annual outlook issue of the Purdue Ag Econ Report (PAER), where take a look back over the previous year and also a look ahead at the economic conditions we can expect for the agricultural sector for 2021.

This past year was filled with a lot of uncertainty in the agricultural markets. A lingering trade war, weather issues, and the COVID-19 pandemic, impacted prices and brought change to all parts of the agricultural value chain. These issues continue to impact the markets now and likely into 2021.

In the following PAER articles, Agricultural Economics Faculty at Purdue University provide insight on the critical issues facing farmers and the agricultural value chain in 2021.


Brady Brewer

Assistant Professor of Agricultural Economics

Purdue Ag Econ Report Contributor & Editor

Articles in this Publication:

Farmland Values and Cash Rent

Trade Policy Outlook: What should we expect from a Biden Administration?

2021 Agricultural Credit Outlook

An uncertain horizon for farm policy

The Dairy Marketplace: Reflections on 2020 and factors to watch in 2021

Retail Food Price Outlook

2021 Purdue Crop Cost and Return Guide

Providing Some Perspective on the Corn and Soybean Markets

The General Economic Outlook

Latest Articles:

Indiana Farmland Prices Grow at Record Pace in 2022

August 10, 2022

Indiana farmland prices grew at a record pace between June 2021 and June 2022, according to the recent Indiana Farmland Value and Cash Rent Survey. Statewide, the average per acre price for top quality farmland increased by 30.9% to $12,808; average quality farmland increased by 30.1% to $10,598; poor quality farmland prices increased 34.0% to $8,631. Across all quality grades, farmland prices exceeded the previous highs set in 2021.


Trends in Farmland Price to Rent Ratios in Indiana

August 10, 2022

A standard measure of financial performance most commonly used for stocks is the price to earnings ratio (P/E). A high P/E ratio sometimes indicates that investors think an investment has good growth opportunities, relatively safe earnings, a low capitalization rate, or a combination of these factors. However, a high P/E ratio may also indicate that an investment is less attractive because the price has already been bid up to reflect these positive attributes. This paper computes a ratio equivalent to P/E ratio for farmland, the farmland price to cash rent ratio (P/rent), and discusses trends in the P/rent ratio.


Farmer optimism about short-term US farmland values weakens

August 10, 2022

Farmers purchase the majority of US farmland. The 2017 USDA Census of Agriculture reports more than 60% of farmland is owned by farmers. Farmers’ farmland value expectations are an important driver of farmland prices.


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The Purdue Agricultural Economics Report is a quarterly publication written by faculty and staff from the Department Agricultural Economics at Purdue University.

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