Indiana farmland prices still on the rise
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Indiana’s farmland continues to grow more valuable as a new Purdue survey shows the average acre price is around $13,700.
The Purdue Farmland Value and Cash Rents Survey showed a 7.3% year-to-year increase for top-quality farmland. Average-quality farmland had a 5.8% bump at around $11,200 per acre, while poor-quality farmland was more stagnant at 0.7% and $8,600.
Cash rents have also increased from last year with all three qualities also setting records. Top-quality land cash rent per acre jumped to $306 at 1.99%, the average was $257 at 2.09% and low-quality sat at $212 and 2.5%.
“While farmland prices reached a new peak in 2023, the appreciation rate from 2022 to 2023 was much lower than the record-high price growth observed between 2021 and 2022,” said Todd Kuethe, the Schrader Endowed Chair in Farmland Economics and the survey’s author, in a news release. “Farm incomes and liquidity are playing a role in boosting price growth; however, rising interest rates continue to put downward pressure on purchases financed through mortgages.”
The report showed farmland transitioning out of agricultural production saw a value increase of 4.1%. Recreational land decreased in value by 10.4% to $8,170.