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cash rent

Becoming a “Best in Class” Farm

Corn Belt agriculture is in the midst of transitioning from one of the most profitable periods on record to what could be an extended period of tight margins for most corn and soybean operations. Now that the 2015 planting season is drawing to a close, you should take time to reevaluate your farming operation and consider how you can make sure your farm is strategically positioned to be a “best in class” operation in the years ahead. Doing so will help ensure that your farm will thrive, not just survive, in an era of tight operating margins.

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Where Are Indiana Farmland Values Headed?

Recorded August 7, 2015 | Results from the June 2015 Purdue Farmland Values Survey including average farmland and cash rental value estimates for the state of Indiana and key cropping regions within the state.

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Evaluating Your Farmland Rental “Options”

Gross revenues for most Indiana corn and soybean farms reached unprecedented levels during 2006 through 2013, but declined sharply in 2014 and 2015. The revenue decline, which will be exacerbated on many Indiana farms by yield reductions caused by this spring and summer’s excessive rainfall, is putting tremendous pressure on operating margins.

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What is in Store for the Agricultural Land Market?

This article briefly discusses key factors driving potential changes in farm land values. These factors include cash rent, long-term interest rate on U.S. Treasuries, inflation, risk premium for the farming sector, and the growth rate of cash rent.

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Farmland Price to Earnings Ratios for Indiana

This paper explores trends in farmland values, cash rents, interest rates, the farmland price to cash rent (P/Rent) multiple, and the price to earnings (P/E) ratio on stocks. The P/Rent multiple averaged 17.6 from 1960 to 2012 and ranged from 11.1 in 1986 to 29.5 in 2012.

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Farm Managers and Rural Appraisers’ Assessment of Indiana’s Farmland Market

Even with a severe drought during the summer of 2012, the Indiana land market continues to move higher. The February 2013 issue of the AgLetter, a Federal Reserve Bank of Chicago newsletter, indicated that farmland values in the Seventh District (Iowa, and parts of Illinois, Indiana, Michigan, and Wisconsin) increased 16% from January 1, 2012 to January 1, 2013.

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Farmland Values – Will the Boom Turn Bust Presentation

Top Producer Seminar presentation by Dr. Brent Gloy.

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When Do Farm Booms Become Bubbles?

Federal Reserve Bank of Kansas City Symposium, July 16-17, 2012 – Session 1: When Do Farm Booms Become Bubbles? | Rapid increases in agricultural incomes and asset values have brought back memories of previous booms and busts. Henderson, Gloy, and Boehlje (2011) chronicled previous agricultural booms and busts noting that they have often corresponded to rapid expansions and contractions of agricultural exports.

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Farmland Values – Will the Boom Turn Bust?

Rapid increases in agricultural incomes and asset values have brought back memories of previous booms and busts. Henderson, Gloy, and Boehlje (2011) chronicled previous agricultural booms and busts noting that they have often corresponded to rapid expansions and contractions of agricultural exports. As in previous eras, today’s agricultural boom has been fueled by increases in export demand. A key difference however, is the dramatic increase in domestic demand associated with the use of biofuels.

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Fixed and Flexible Cash Rent Agreements for Your Farm

Rental arrangements for cropland vary widely from one geographic area to another. What is desirable or equitable for one particular landowner/operator relationship is not acceptable for others. The purpose of this publication is to help operators and landowners develop equitable cash-rent arrangements and assist them in making sound decisions based on an equitable evaluation of resources.

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