Farm Management Tour: July 17, 2024

Learn about innovative farm management strategies, new technologies for improving efficiency and productivity, ways to ensure a successful transition of farm operations to the next generation. Join us at the 91st annual Purdue Farm Management Tour and reception honoring the 2024 Indiana Master Farmers in Randolph County (Winchester), Indiana on Wednesday, July 17th.

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Farmland

Thoughts on the Relationship between Corn Price Expectations and Farmland Values

Over the course of the last few years I and my colleagues have repeatedly made the point that farmland values are driven by investor expectations of the magnitude of the future earnings that the farm will generate.

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.

Agricultural Price and Land Values: Insights from Participants in the “Financial Health of Farming and Land Values” Conference

Several agricultural economists associated with CCA have recently sought to address questions surrounding farmland values and related investment decisions. Soaring Corn Belt farmland values have also been on the minds of farmers, agricultural industry professionals and investors.

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.

Farmland Values – Will the Boom Turn Bust Presentation

Top Producer Seminar presentation by Dr. Brent Gloy.

The Wealth Effect in U.S. Agriculture

Since 2009, wealth in the U.S. farm sector has surged along with booming farmland values. Similar to nonfarm households, farm enterprises historically have used wealth to support consumption and investments when income fades. During years of low income, farmers tap their existing wealth to finance spending on capital investments such as buildings, vehicles, machinery and other equipment.

Is the Current Farm Prosperity Sustainable? What to Watch

Many are asking whether the current prosperity in farming is sustainable. The answer is not obvious, but the following “what to watch” list might provide a useful perspective to answer this question.

2012 Indiana’s Farmland Market Continues Moving Higher

While Indiana crops are suffering from the worst drought since 1988, the weather is not the only thing that has been hot. Robust net farm incomes, favorable interest rates, strong farmland demand, and a limited supply of farmland for sale kept Indiana farmland values and cash rents moving higher. The June 2012 Purdue Farmland Value…

When Do Farm Booms Become Bubbles? (Transcript)

Moderator: Jason Henderson
Vice President and Omaha Branch Executive
Federal Reserve Bank of Kansas City

When Do Farm Booms Become Bubbles? (Remarks)

I want to talk today very briefly or concisely about “when do farm booms become bubbles?” We’ll start by reinforcing the idea we just heard that agriculture’s history has some remarkable periods of booms and busts in it. Part of that can be explained by the heavy capital intensity of the agricultural economy.

Center for Commercial Agriculture