Purdue report shows farmland value growth

By Andi Anderson

The Purdue Agricultural Economics Report has released its latest findings, revealing that Indiana farmland prices have reached record highs in 2024. According to the Purdue Farmland Value and Cash Rent Survey, the average price of top-quality farmland has climbed to $14,392 per acre, marking a 4.8% increase from June 2023.

Prices for average and poor-quality farmland also saw gains, rising by 3.7% to $11,630 per acre and by 4.4% to $9,071 per acre, respectively.

Todd H. Kuethe, the Schrader Endowed Chair in Farmland Economics and author of the survey, noted that much of the price increase occurred in the latter half of 2023. “While farmland prices increased between 2023 and 2024, several factors like high interest rates and lower farm incomes are exerting downward pressure on prices. However, the limited supply of available land is keeping prices firm,” Kuethe explained.

The report highlighted significant regional variations in farmland price changes. The Southwest region of Indiana experienced the highest appreciation rates, particularly for top and average-quality land.

In contrast, the Southeast region saw the most substantial declines across all quality grades. Interestingly, top-quality land in the Southwest now exceeds the price per acre in the Central region, although the Central region still maintains the highest values for average and poor-quality land.

Looking ahead, respondents to the survey anticipate a modest decline in farmland prices through the remainder of 2024. However, these prices are expected to stay slightly above those from June 2023.

Additionally, land transitioning out of agricultural production has surged in value by 21.6%, driven largely by large-scale development projects. In contrast, recreational land prices have seen a slight dip.

Statewide cash rents have shown minimal changes, with some regional variations reflecting broader trends in land values. The Purdue Farmland Value and Cash Rents Survey is conducted annually by the department of agricultural economics in June and is published in the Purdue Agricultural Economics Report.

The survey gathers insights from professionals knowledgeable about Indiana’s farmland market, who provide estimates of market values for farmland in December 2023, June 2024, and a forecast for December 2024.

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