Indiana farmland costs hit document excessive in 2021


WEST LAFAYETTE, Ind. – The Purdue Farmland Worth and Money Rents Survey suggests farmland costs throughout Indiana have risen to all-time highs in June of 2021. Statewide, high quality farmland averaged $9,785 per acre, up 14.1% from the identical time final yr. The excessive progress charge for top-quality farmland was intently adopted by the expansion in average- and poor-quality farmland costs, which elevated by 12.5% (to $8,144) and 12.1% (to $6,441), respectively. Throughout all land high quality courses, 2021 per-acre farmland costs exceeded the earlier data set in 2014.

“A singular mixture of financial forces, together with internet farm revenue, anticipated revenue progress, crop and livestock costs, rates of interest, exports, inflation, various investments, U.S. coverage, and farmers’ liquidity, all performed a significant component within the worth improve we’re experiencing,” mentioned Todd H. Kuethe, Purdue affiliate professor and the Schrader Endowed Chair in Farmland Economics and survey writer.

That’s uncommon, he mentioned.

“Usually we’ll see constructive worth stress from one or two market forces; nonetheless, this June, survey respondents indicated that each one 10 forces we requested them about had been placing upward stress on land values,” he mentioned.

Statewide money rental charges elevated throughout all land high quality courses in 2021. Common rental charges elevated by 3.9% for top-quality land, from $259 to $269 per acre. The money rental charges for average- and poor-quality lands each elevated by 4.6% to $227 and $183, respectively. On the regional degree, the most important rental charge will increase for top- and average-quality land had been each within the Southeast area (11.5% and 6.4%), and the most important rental charge will increase for poor-quality land had been within the North area (5.5%). Throughout all three land-quality courses, the best per-acre money lease was noticed within the West Central area.

Lease as a share of June land worth decreased barely in 2021, suggesting that money rental charges appreciated slower than farmland costs. Some portion of the distinction in appreciation charges between farmland values and money rents might mirror modifications in expectations between fall 2020, when 2021 rents had been negotiated, and the 2021 rising season.

For extra in-depth evaluation on the survey, the Purdue Middle for Business Agriculture will host a free webinar from 12:30-1:30 p.m. ET Aug. 20. Be a part of Purdue agricultural economists Kuethe, James Mintert and Michael Langemeier as they break down the Purdue Farmland Values Survey and USDA Land Values report, focus on advertising and marketing methods for 2021 corn and soybean crops, and make projections for 2022 corn and soybean returns.

The division of agricultural economics conducts the Purdue Farmland Worth and Money Lease Survey every June and publishes it within the Purdue Agricultural Economics Report. The survey is produced by way of the cooperation of quite a few professionals educated of Indiana’s farmland market. These professionals offered an estimate of the market worth for bare- poor-, average-, and top-quality farmland in final December and June, and a forecast worth for this coming December.



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