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Farmland

The New Method for Calculating Assessments Will Reduce Taxes for Farmland Owners

Farmland assessments for property taxes rose rapidly from 2007 through 2015. The taxable assessed value of agricultural property increased by 81% statewide during these years, and as a result agricultural property taxes rose 63%.

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2016 Agriculture and Applied Economics Association Annual Outlook Survey Highlights

Results from these two surveys reveal that there are some stark differences in opinion between economists and producers regarding the U.S. agricultural economy.

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Land Values in Indiana (2016)

Recorded August 17, 2016 | Purdue agricultural economists present and discuss results from the 2016 Purdue Farmland Values Survey.​

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Trends in Land Price, Cash Rents, and Price to Rent Ratios for Iowa, Illinois, and Indiana

Farmland prices and cash rents have fallen in Iowa, Illinois, and Indiana in the last couple of years. However, our analysis indicates that the farmland price per acre divided by cash rent per acre, and farmland price per acre divided by average cash rent for the previous five years, continue to be substantially higher than historical values.

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Trends in Land Prices, Cash Rents, and Price to Rent Ratios for Iowa, Illinois, and Indiana

Farmland prices declined over much of the Corn Belt region during the last couple of years. However, farmland prices remain substantially above historical prices. For example, despite having dropped approximately 12% since 2014, average farmland prices in Indiana are still approximately six times what they were in 1990 and approximately double what they were in…

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2016 Indiana Farmland Values and Cash Rents Continue Downward Adjustments

The collapse in grain prices and the impact of tighter gross margins are working their way through the agricultural economy.

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Farmland Update from Indiana Farm Managers and Rural Appraisers

The farm press and coffee shops have been a buzz this winter with discussions of farmland values in Indiana and other Midwestern states. In February 2016, the Chicago Federal Reserve Bank indicated that farmland values in Indiana were down 2% between October 1, 2015 and January 1, 2016.

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Long-Term Cash Rent Decisions Using A Cash Rent Decision Tool​

Recorded December 18, 2015 | A demonstration of use of a cash rent spreadsheet tool to calculate breakeven cash rents, compare the breakeven cash rent to local market rents, compute the market rate premium (if any) above the breakeven rate and the impact paying premiums could have on a farm’s liquidity over the course of the next five years.

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Buying (Selling) Inputs in the Current Business Climate

Grain farmers are facing significantly lower prices and incomes in 2015 compared to previous years which have resulted in intense pressure to lower costs by aggressive negotiation on land rents and purchased inputs. Much of this negotiation has focused on price–farmers are asking/expecting price reductions, but suppliers of fertilizer seed and chemicals in particular are hesitant to adjust prices down.

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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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