By Andi Anderson
Indiana farmland cash rental rates are set to rise again in 2025, though at a modest pace. Purdue University agricultural economists Todd Kuethe and Michael Langemeier report that the latest Purdue Farmland Values and Cash Rental Rates survey shows statewide cash rents increasing by about 1.5% compared to 2024.
The economists discussed the results in the second of two Purdue podcast episodes reviewing the 2025 survey. They highlighted how cash rents compare with share and flex lease arrangements, noting that flexible cash leases are gaining attention from both landowners and tenants seeking ways to manage market volatility.
Historical data reveal steady upward movement in cash rents over the past decade, though recent increases have been more moderate than the sharp climbs seen earlier. The survey also points to regional differences, with some parts of the state seeing stronger gains due to local land values and cropping conditions.
Kuethe and Langemeier also examined net returns to land, helping explain why landowners continue to favor cash leases even as interest in share and flex leases grows. Flexible leases, which tie rent to crop prices or yields, provide a balance between predictable income for landowners and risk management for tenants.
For Indiana farmers and landowners, the 2025 findings suggest continued stability in the farmland rental market, with gradual growth in rates and evolving lease structures to accommodate changing economic conditions.
Slides and a full transcript of the discussion are available through Purdue University’s Farmland Values and Cash Rental Rates resource page.
Photo Credit: pexels-karolina-grabowska
Categories: Indiana, Business, General