Agricultural Economics
Indiana farmland values hold steady amid regional shifts
WEST LAFAYETTE, Ind. — Indiana farmland prices remained relatively stable in 2026, according to the latest Purdue Farmland Values and Cash Rent Survey results.
The Purdue University Department of Agricultural Economics conducts the survey in cooperation with numerous professionals knowledgeable about Indiana’s farmland market. These professionals include farm managers, rural appraisers, land brokers, agricultural loan officers, farmers and Farm Service Agency county office directors. They estimate the market value for unimproved poor-, average- and top-quality farmland in December 2025 and June 2026 and provide a forecast for December 2026.
The average price of top-quality farmland reached $14,909 per acre, a 0.6% increase from June 2025. Average-quality farmland declined 1.1% to $12,121 per acre, while poor-quality farmland fell 3.1% to $9,460 per acre.
“While statewide farmland values were relatively stable this year, the market continues to show signs of adjustment following the rapid increases seen from 2020 to 2022,” said Todd Kuethe, the Schrader Endowed Chair in Farmland Economics at Purdue and the survey’s author. “Many of the forces affecting farmland markets are putting downward pressure on values, including expectations for lower crop returns and higher interest rates. At the same time, limited land availability and other factors continue to provide support for farmland prices.”
Farmland values varied considerably across Indiana’s regions and quality grades, with some areas experiencing increases while others declined. Kuethe noted that the current market resembles the 2014-19 adjustment period that followed the farmland boom of 2007-13. Respondents expect farmland prices to decline modestly through the remainder of 2026.
Michael Langemeier, an agricultural economics professor and director of Purdue’s Center for Commercial Agriculture, also found in an accompanying analysis of 66 years of Indiana farmland data that the current price-to-rent ratio is substantially above historical levels, suggesting that farmland prices remain elevated relative to the income generated by the land. Historically, high price-to-rent ratios have been associated with lower subsequent returns for farmland investors.
About Purdue Agriculture
Purdue University’s College of Agriculture is one of the world’s leading colleges of agricultural, food, life and natural resource sciences. The college is committed to preparing students to make a difference in whatever careers they pursue; stretching the frontiers of science to discover solutions to some of our most pressing global, regional and local challenges; and, through Purdue Extension and other engagement programs, educating the people of Indiana, the nation and the world to improve their lives and livelihoods. To learn more about Purdue Agriculture, visit this site.
About Purdue University
Purdue University is a research institution ranked among the top 10 public universities in the United States. More than 106,000 students study at Purdue across multiple campuses, including more than 57,000 at our main campus locations in West Lafayette and Indianapolis. As a land-grant university committed to affordability and accessibility, Purdue’s main campus has frozen tuition 14 years in a row, enabling more students than ever to graduate debt-free.
Writer: Morgan French
Media contact: Devyn Ashlea Raver, draver@purdue.edu
Sources: Todd Kuethe, tkuethe@purdue.edu
Agricultural Communications: Maureen Manier, mmanier@purdue.edu, 765-494-8415
