The value of an acre of Indiana farmland rose about 2% versus a year earlier, according to an annual survey conducted by Purdue University's Craig Dobbins. The survey found the value of top-quality farmland rose 1.6% through June versus a year ago, medium-quality farmland rose 2.1% and poor-quality farmland increased 2.4%.
"If one is willing to associate the word 'modest' with these increases, these results indicate the downward adjustment in farmland values may be over," Dobbins states.
While generally higher, the survey found changes in farmland values across regions of the state and quality of farmland was a mixture of increases and decreases. Statewide top-quality land had a value of $8,668 per acre, average-quality land had a value of $7,072 per acre and poor-quality land had a value of $5,407 per acre.
The northern and southeast regions reported strong annual gains, ranging from 7.1% to 13.3%. In the north region, poor-quality farmland had the largest percentage increase of 8.6% to $5,180 per acre. Top-quality land increased 7.1% to $8,492 and average-quality land increased 7.8% to $7,164 per acre. In the southeast region, average-quality farmland had the largest percentage increase, surging 13.3% to $5,450 per acre. Top-quality farmland increased 13% to $6,825 and poor-quality land rose 7.9% to $3,831 per acre.
The west-central and central regions also had increases across all land qualities but they were more modest than the gains in the north and southeast. For the west-central and central region, the increase in values ranged for 0.5% to 3.0%. In west-central Indiana, top-quality farmland increased 2.3% to $9,452 per acre, average-quality land rose 0.5% to $7,815, and poor-quality land rose 0.6% to $6,245. For the central region, top-quality farmland increased by 1.2% to $8,982 per acre, average- quality land increased 3.0% to $7,684 and poor-quality land increased 2.8% to $6,194.