Indiana farmland prices hit record high in 2021
The price of Indiana farmland pegs a record high this summer, according to the annual Purdue Farmland Value and Cash Rents Survey. Statewide, top-quality farmland averaged $9,785 per acre, up 14.1% from the same time last year. The high growth rate for top-quality farmland was closely followed by the growth in average- and poor-quality farmland prices, which increased by 12.5% (to $8,144) and 12.1% (to $6,441), respectively. Across all land quality classes, 2021 per-acre farmland prices exceeded the previous records set in 2014.
“A unique combination of economic forces, including net farm income, expected income growth, crop and livestock prices, interest rates, exports, inflation, alternative investments, U.S. policy, and farmers’ liquidity, all played a major factor in the price increase we’re experiencing,” states Todd H. Kuethe, Purdue associate professor and survey author.
The department of agricultural economics conducts the Purdue Farmland Value and Cash Rent Survey each June. The survey is produced through the cooperation of numerous professionals knowledgeable of Indiana’s farmland market. These professionals provided an estimate of the market value for bare- poor-, average-, and top-quality farmland in last December and June, and a forecast value for this coming December.