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Trends in Farmland Price to Rent Ratios in Indiana
The P/rent ratio (farmland price per acre divided by cash rent per acre) is substantially higher than historical values. The P/rent10 ratio is computed by dividing farmland price per acre by the ten-year moving average cash rent. A negative relationship was found between the P/rent10 ratio at the time of purchase, and the 10-year and 20-year rates of return.
August 19, 2025
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