By Andi Anderson
Indiana farmland values showed relative stability in 2026, according to the latest Purdue Farmland Values and Cash Rent Survey. Although some fluctuations occurred across different land quality categories and regions, the overall market remained steady compared to previous years.
The annual survey is conducted by Purdue University’s Department of Agricultural Economics. It gathers information from professionals who closely follow the farmland market, including farm managers, land brokers, rural appraisers, agricultural loan officers, farmers, and Farm Service Agency county office directors. Their estimates provide insights into farmland values and future market expectations across Indiana.
Survey results revealed that top-quality farmland maintained its value and recorded a slight increase. The average price for top-quality farmland reached $14,909 per acre, representing a 0.6% rise from June 2025. Meanwhile, average-quality farmland experienced a small decline of 1.1%, bringing its value to $12,121 per acre. Poor-quality farmland recorded the largest decrease, falling 3.1% to $9,460 per acre.
According to Todd Kuethe, the Schrader Endowed Chair in Farmland Economics at Purdue and the survey’s author, the market is undergoing a period of adjustment after several years of rapid growth.
“While statewide farmland values were relatively stable this year, the market continues to show signs of adjustment following the rapid increases seen from 2020 to 2022,” said Todd Kuethe, the Schrader Endowed Chair in Farmland Economics at Purdue and the survey’s author. “Many of the forces affecting farmland markets are putting downward pressure on values, including expectations for lower crop returns and higher interest rates. At the same time, limited land availability and other factors continue to provide support for farmland prices.”
The findings indicate that farmland prices are being shaped by multiple economic factors. Expectations of reduced crop profitability and increased borrowing costs have created pressure on land values. However, the limited supply of available farmland continues to support demand and prevent significant price declines.
The survey also highlighted noticeable regional differences across Indiana. While some areas reported increases in farmland values, others experienced declines. As a result, landowners and investors are seeing varying market conditions depending on location and land quality.
Kuethe noted that the current situation resembles the adjustment period experienced between 2014 and 2019, which followed the major farmland boom that occurred from 2007 to 2013. During that earlier period, farmland markets gradually adjusted after years of strong growth. A similar trend appears to be developing today as the market responds to changing economic conditions.
Survey participants expect farmland values to decline slightly during the remainder of 2026. While no major drop is anticipated, respondents believe the market may continue to soften modestly as economic pressures remain in place.
Additional insights came from Michael Langemeier, agricultural economics professor and director of Purdue’s Center for Commercial Agriculture. After analyzing 66 years of Indiana farmland data, Langemeier found that the current price-to-rent ratio remains well above historical averages. This suggests that farmland values continue to be relatively high when compared with the income generated by the land.
Historically, elevated price-to-rent ratios have often been linked to lower future returns for farmland investors. This finding may encourage investors and landowners to carefully evaluate market conditions and long-term expectations before making financial decisions.
Photo Credit: gettyimages-alexeyrumyantsev
Categories: Indiana, Business