By Andi Anderson
Indiana farmland prices continued their upward trend in 2024, setting new record highs according to the latest Purdue Farmland Value and Cash Rents Survey.
The average price for top-quality farmland climbed to $14,392 per acre, marking a 4.8% increase from June 2023. Additionally, average and poor-quality farmland saw price increases of 3.7% and 4.4%, reaching $11,630 and $9,071 per acre, respectively.
Survey respondents noted that much of this price growth occurred in the latter half of 2023, despite several factors such as high interest rates and lower farm incomes that typically exert downward pressure on land values. The limited supply of available land is one key factor keeping prices firm across the state.
The survey revealed significant regional differences in farmland price changes. The Southwest region experienced particularly high appreciation rates, especially for top and average-quality land.
In contrast, the Southeast region saw the most significant declines across all land quality grades. Interestingly, top-quality land in the Southwest now surpasses that of the Central region in price per acre, although the Central region still holds the highest values for average and poor-quality land.
Looking ahead, respondents expect a modest decline in farmland prices throughout the remainder of 2024. However, prices are anticipated to remain slightly above the levels observed in June 2023.
Land transitioning out of agricultural use surged in value by 21.6%, largely due to large-scale development projects, while recreational land prices saw a slight dip.
Statewide cash rents remained relatively stable, with some regional variations reflecting broader trends in land values. The Purdue Farmland Value and Cash Rents Survey, conducted each June by the department of agricultural economics, provides valuable insights into Indiana’s farmland market.
The survey results, published in the Purdue Agricultural Economics Report, are based on estimates from professionals knowledgeable about the state’s farmland market, offering a snapshot of market values for December 2023, June 2024, and a forecast for December 2024.
Photo Credit: gettyimages-alexeyrumyantsev
Categories: Indiana, Business