2022-08 PAER Purdue Farmland Values & Cash Rents Survey Results

August 10, 2022

The Purdue Farmland Value and Cash Rents Survey suggests Indiana farmland prices grew at a record pace between June 2021 and June 2022, exceeding previous highs set in 2021. Statewide, top quality farmland averaged $12,808 per acre, up 30.9% from the same time last year. The average per acre price of average quality farmland similarly increased by 30.1% to $10,598. Poor quality farmland prices exhibited the largest increase of 34.0% to $8,631.

“Multiple factors are influencing the increase in farmland prices, including positive net farm incomes, relatively strong commodity prices, inflation, and high farmer liquidity,” said Todd H. Kuethe, Purdue associate professor and Schrader Endowed Chair in Farmland Economics and survey author. “However, rising interest rates are associated with increased costs of borrowing, which put downward pressure on purchases financed through mortgages.”

Statewide cash rental rates also increased across all land quality classes in 2022. Average cash rents increased by 11.5% for top quality land, 10.8% for average quality land, and 13.2% for poor quality land. The increases in cash rents were the highest observed since the 2011–2012 period. Across the three quality grades, cash rents also reached a new record high in 2022 at $300 per acre for high quality farmland, $252 for average quality, and $207 for poor quality land. At the regional level, the largest cash rental rate increases for top and average quality land were in the Northeast (21.3% and 13.2%, respectively), and the largest increase for poor quality land was in the Southwest region (18.6%). Across all three quality grades, the highest per acre average cash rent was observed in the West Central region.

 

To view the full Farmland Values & Cash Rents survey results, as well as associated articles and charts, please select from the articles listed below.

 

 

Indiana Farmland Values & Cash Rental Rates: 2022 Update Webinar

Indiana Farmland Values & Cash Rental Rates: 2022 Update Webinar

Purdue ag economists Todd Kuethe, James Mintert, and Michael Langemeier discussed the results from the 2022 Purdue Farmland Values and Cash Rents Survey and USDA’s Land Values report during a webinar on August 24th. The team provided an update on the change in Indiana farmland values and cash rental rates and reviewed farmland value estimates from USDA for the entire Corn Belt and compared the changes observed on the Indiana survey to USDA’s findings.

The webinar recording and accompanying slides are available at https://purdue.ag/landvalues2022.

 

Articles in this Publication:

Indiana Farmland Prices Grow at Record Pace in 2022

Trends in Farmland Price to Rent Ratios in Indiana

Farmer optimism about short-term US farmland values weakens

Increasing Concern of a Bubble in Indiana Farmland Prices

Latest Articles:

The Outlook for the U.S. Economy in 2024

January 16, 2024

Professor DeBoer explains why so many economists predicted recession in 2023 and why it didn’t happen. His analysis indicates slowed growth in 2024 from reduced spending but that recession could be avoided.

READ MORE

Trade and trade policy outlook, 2024

January 16, 2024

Professor Hillberry reviews trade and trade policy developments from 2023 including responses to the Russia-Ukraine war. Looking ahead he identifies the potential for trade disputes and how the election may shape US merchandise and agriculture trade.

READ MORE

Will 2024 bring a new Farm Bill?

January 16, 2024

Congress failed to pass new farm legislation in 2023, instead continuing the 2018 Farm Bill for one more year. In a 2024 election year, the time to produce a new five-year bill for agriculture may be short.

READ MORE

Delivered right to your inbox

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

By joining this mailing list, you will receive an email when a new publication is released. This mailing list is kept solely for the purpose of sharing the report and is not used for any other purposes.