Indiana farmland prices have continued the trend of record highs in 2024, according to the latest Purdue Farmland Value and Cash Rent Survey. The average price of top-quality farmland reached $14,392 per acre, a 4.8% increase from June 2023. Average and poor-quality farmland also saw gains, with prices increasing 3.7% and 4.4% to $11,630 and $9,071 per acre, respectively.

“While farmland prices increased between 2023 and 2024, survey respondents noted that much of the growth appears to have taken place in the latter half of 2023,” said Todd H. Kuethe, Schrader Endowed Chair in Farmland Economics and the survey’s author. “A number of forces, such as high interest rates and lower farm incomes, are placing downward pressure on prices, but the limited supply of land is keeping prices firm.”

The change in farmland prices varied significantly across regions and quality grades. The Southwest region experienced exceptionally high appreciation rates, especially for top and average-quality land, while the Southeast region saw the most pronounced declines across all quality grades. Top-quality land in the Southwest now surpasses the Central region in price per acre. Particularly, top-quality land in the Southwest surpasses the Central region in price per acre. However, the Central region continues to hold the highest values for average and poor-quality land.

Kuethe also noted that respondents expect a modest decline in farmland prices through the rest of 2024, though prices are anticipated to remain slightly above those from June 2023. Additionally, land transitioning out of agricultural production surged in value by 21.6%, driven by large-scale development projects, while recreational land prices dipped slightly. Statewide cash rents saw minimal changes, with some variation across regions, reflecting broader trends in land values.

The department of agricultural economics conducts the Purdue Farmland Value and Cash Rents Survey each June and publishes it in the Purdue Agricultural Economics Report. The survey is produced through the cooperation of numerous professionals knowledgeable of Indiana’s farmland market. These professionals provide an estimate of the market value for bare poor, average, and top-quality farmland in December 2023, June 2024, and a forecast for December 2024.

Indiana Farmland Values & Cash Rental Rates: 2024 Update

Join Purdue ag economists Todd Kuethe, Michael Langemeier and James Mintert as they discuss Indiana farmland values on this, the first of two episodes reviewing the 2024 Purdue Farmland Values and Cash Rents Survey results. Each June, the department of agricultural economics surveys knowledgeable professionals regarding Indiana’s farmland and cash rental market. The 2024 survey results confirmed that the average value for Indiana farmland hit a new record high this summer. A number of forces, such as high interest rates and lower farm incomes, are placing downward pressure on prices, but the limited supply of land is keeping prices firm. The episode shares insights from the Farm Sector Balance Sheet, USDA data collection methods, regional variations in land values, and the influences of factors such as interest rates and development pressures on farmland prices. Gain an in-depth understanding of trends, market dynamics, and future expectations for farmland values.

The two-part* series is available for free at https://purdue.ag/farmland-values.

*Part two will be available at the end of September 2024

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