2026-08 PAER: Purdue Farmland Values and Cash Rent Survey Results

In 2026, Indiana farmland prices stayed fairly stable, showing slight variations among top, average and poor quality grades, as reported in the latest Purdue Farmland Values and Cash Rent Survey. The average price of top quality farmland reached $14,909 per acre, up 0.6% from June 2025. Average quality farmland in Indiana decreased by 1.1% to $12,121 per acre, while poor quality farmland dropped 3.1% to $9,460 per acre. While these statewide changes are minor, they conceal substantial differences across Indiana’s regions and farmland quality grades.

“While statewide farmland values were relatively stable this year, the market continues to show signs of adjustment following the rapid increases seen from 2020 to 2022,” said Todd Kuethe, the Schrader Endowed Chair in Farmland Economics at Purdue and the survey’s author. “Many of the forces affecting farmland markets are putting downward pressure on values, including expectations for lower crop returns and higher interest rates. At the same time, limited land availability and other factors continue to provide support for farmland prices.”

The 2026 results reveal notable regional variations in the market. Some regions saw rising farmland values, while others declined, with land quality within regions influencing these shifts. This pattern is similar to the 2014-2019 period, when farmland values stabilized following rapid growth. Overall, though, statewide farmland values remain well above historical averages, having increased considerably over the last ten years.

The relationship between farmland prices and cash rents also points to elevated land values. An analysis of 66 years of Indiana farmland data shows that the current price-to-rent ratio is substantially higher than historical levels, suggesting that farmland prices may be high relative to the income generated by the land. The analysis also finds that periods of high price-to-rent ratios have historically been associated with lower subsequent returns to farmland investors. While factors such as relatively low land availability, the attractiveness of farmland as an investment and its role as an inflation hedge may continue to support values, lower net farm returns and higher interest rates could place additional pressure on prices in the years ahead.

Respondents expect farmland prices to decline modestly through the remainder of 2026, reflecting continued market adjustment. The current period follows the short but sharp farmland price boom from 2020 to 2022, when statewide values increased by more than 60% in three years. Whether the current adjustment will follow a path similar to the 2014 to 2019 period remains uncertain. Still, the 2026 survey results suggest that farmland markets are entering a period in which buyers, sellers and investors will need to pay close attention to the relationship between land prices, cash rents, interest rates and farm profitability.

The Department of Agricultural Economics conducts the Purdue Farmland Values and Cash Rent Survey each June, and it is published in the quarterly publication Purdue Agricultural Economics Report.

Indiana Farmland Values & Cash Rents Insights

Purdue ag economists Todd Kuethe and Michael Langemeier discuss results from the 2026 Purdue Farmland Values and Cash Rental Rates Survey and implications for Indiana farmers and landowners on the Purdue Center for Commercial Agriculture’s YouTube channel.

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