Purdue’s latest land value survey shows farmland values are up in Indiana

Story by Emma Ea Ambrose

August 16, 2018

The June 2018 Purdue Land Value Survey published in the Purdue Agricultural Economics Report (PAER), by the Department of Agricultural Economics, was released earlier this month. The report lays out changes in farmland values and cash rents. This survey examines trends in farmland values, cash rents and also details market factors impacting these prices. Craig Dobbins, professor of agricultural economics and the survey’s author, said both farmland values and cash rents experienced a small increase statewide this year.

“It’s often difficult to find information about current farmland values or historic farmland values and cash rents,” Dobbins said. “The purpose of our survey is to help people have some idea of what’s happening in the farmland market by providing an up to date reference.”

According to the survey, top quality, average quality and poor quality farmland increased in value from last year by 1.6 percent, 2.1 percent and 2.4 percent, respectively. In Indiana, top quality farmland has an average value of $8,668 per acre, average quality farmland rings in at $7,072, while poor-quality farmland averages $5,407. Like farmland values, changes in cash rent were consistently positive. On the whole, cash rents for the state increased 2.4 percent to 3.2 percent. Top quality farmland runs $261 an acre with average and poor quality farmland priced at $210 and $168, respectively.

The report identified the amount of farmland on the market and rate of inflation as the two market factors positively influencing the cost of farmland. Nine factors, including crop and livestock prices, interest rates and agricultural policy, had negative influences. Since 2014, an increasing number of these 11 market factors have turned negative.

It’s becoming more difficult to predict how certain agricultural economic factors are going to impact land values, Dobbins observed, especially with recent changes to trade and tariff policy in the U.S.

“Production agriculture is always risky, but it has gotten really risky given the current events taking place. Production agriculture is highly dependent on export markets. To get a change in policy to one that is erecting barriers rather than reducing barriers is really a shift,” Dobbins said. Such a volatile trade environment makes it difficult to formulate predictions, however, Dobbins added, the uncertainties in trade policy seem likely to delay the hoped for increase in corn and soybean prices. Flat or declining farmland values seem more likely than continued increases going forward.

Featured Stories

Dr. Kathy Heinsohn Receives 2024 John Osmun Award

On January 31, 2025, Dr. Kathy Heinsohn received the 2024 John V. Osmun Alumni Professional...

Graduate Student Spotlight: Gideon Ajibola

Gideon Ajibola is a Ph.D. student in the Purdue Animal Sciences Department, and he also received...

Vidya Nagaraju and Kingsly Ambrose measure the size and shape distribution of particles

Particle science innovations focus on improving grain facility safety

Frequent explosions plagued the U.S. grain industry until the Occupational Safety and Health...

Purdue TWS president Celia Parton and master's student Emma Johnson accept the plaque for North Central Region Student Chapter of the Year at the Midwest Fish and Wildlife Conference.

Student Chapter of the Wildlife Society Named North Central Region Chapter of the Year

The Purdue student chapter of The Wildlife Society was named as the North Central Region’s...

Honoring Barry Delks' Legacy

A retirement celebration for Barry Delks was held on January 31, honoring his career dedicated to...

U.S. farmers retain optimistic outlook for 2025 despite ag trade uncertainty

U.S. farmers began 2025 with an optimistic outlook, as the January Purdue University/CME Group Ag...