Indiana farmland prices once again hit record highs in 2023, according to the recent Purdue Farmland Value and Cash Rents Survey. Statewide, the average price of top-quality farmland averaged $13,739 per acre, up 7.3% from June 2022. Average- and poor-quality farmland increased 5.8% and 0.7% to $11,210 and $8,689 per acre, respectively.
“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 H. Kuethe, the Schrader Endowed Chair in Farmland Economics and the survey’s author. “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.”
Statewide, cash rents increased by a modest amount between 2022 and 2023, yet in nominal terms, all three quality grades are at an all-time high. Per-acre cash rental rates for top-, average- and poor-quality land exceeded the previous highs set in 2013, 2014 and 2021. Indiana per-acre cash rent for top-quality land increased by 1.99% to $306. Cash rental rates for average- and poor-quality land increased by 2.09% and 2.50% to $257 and $212, respectively.
Source: purdue.edu
Photo Credit: gettyimages-jimfeng
Categories: Indiana, General