Record High Farmland Prices in Eastern Corn Belt

Auction results show 45% jump in prices paid per productivity index point since June.

Strong demand for farmland has rocketed prices to new highs, taking out previous records marked in 2013, according to data from Halderman Real Estate Services, Wabash, Indiana. Vice President Pat Karst tells us the data comes from 16 auctions conducted between late October and mid-November. Six sales were online only. Nine were live and used simulcast bidding. One auction was conducted onsite only with no online bidding.

“We sold a total of 2,323 acres for $20,596,000. On average, we sold the farms 20% over the seller’s release price, which is further evidence that it is difficult to price land high enough in a market that is rising this rapidly,” he says.

He points to the surge in the price paid per weighted average productivity index (WAPI) point, which averaged $51.08 in 2020. That average rose to $54.61 for the first half of 2021 – a 7% increase. Currently, it is on pace to average $79.14 for the second half of the year – a 45% explosion in price per point versus the first half of 2021. The second half burst, if it holds, results in a yearly average of $69.39 per WAPI – a 36% annual gain!

“The chart shows the average sale price per WAPI point for the past nine years. We recorded all-time high prices in 2013 and, according to our sales, have done it again in 2021,” he states.

table shows changes in farmland values