By Andi Anderson
According to the 2024 Purdue Indiana Farmland Value and Cash Rents Survey, Indiana farmland prices have reached new record highs.
The survey, conducted by the Purdue University Department of Agricultural Economics, provides insights into the market values of poor-, average-, and top-quality farmland for December 2023, June 2024, and a forecast for December 2024.
The average price of top-quality farmland surged to $14,392 per acre, marking a 4.8% increase from June 2023. Average-quality farmland rose by 3.7% to $11,630 per acre, while poor-quality land increased 4.4% to $9,071 per acre.
Todd Kuethe, the Schrader Endowed Chair in Farmland Economics at Purdue, and author of the survey, noted that much of the price growth occurred in the second half of 2023.
“A number of forces, such as high interest rates and lower farm incomes, are putting downward pressure on prices, but the limited supply of land is keeping values firm,” Kuethe said.
Farmland prices varied significantly by region. The southwest region saw the highest appreciation rates, particularly for top- and average-quality land, while the southeast region experienced the largest declines.
Despite these variations, top-quality land in the southwest now surpasses the central region in price per acre. However, the central region still holds the highest values for average- and poor-quality farmland.
Survey respondents expect a modest decline in farmland prices through the remainder of 2024, though prices are expected to remain slightly above those from June 2023.
Land transitioning out of agricultural production saw a 21.6% increase in value due to development projects, while recreational land prices saw a slight dip. Cash rents statewide remained mostly stable, with some regional variations reflecting broader trends in land values.
The survey, conducted each June, is published by the Purdue Agricultural Economics Report, providing vital data for understanding trends in Indiana’s farmland market.
Photo Credit: purdue-university
Categories: Indiana, Business