Farmland prices across Indiana improved since the June 2019 survey, according to the 2020 Purdue Farmland Value and Cash Rents Survey. However, many of those gains occurred between June and December 2019. Since then farmland prices have declined modestly, the survey reveals.
The strongest year-to-year statewide increase was for poor quality land, which was up 6.3%. Top-quality land was up 4.5%, and average-quality land was up 3.2%. Between June and December 2019, top-, average-, and poor-quality farmland values increased by 5.5%, 5.0% and 8.7%, respectively; yet, between December 2019 and June 2020, top-, average-, and poor-quality farmland values posted modest declines of 1%, 1.7%, and 2.2%.
Todd H. Kuethe, who authored the survey, says many of the survey’s respondents emphasized the uncertainty related to the current COVID-19 pandemic.
“Given the disruptions across the food value chain and deep economic uncertainty, it is difficult to posit what the next year has in store for Indiana farmland market,” he states. “The COVID-19 pandemic is a global phenomenon that will likely continue to disrupt trade patterns and income flows around the world. Everyone is hoping for a quick economic recovery, but the degree to which COVID-19 will impact land values is yet to be seen.”
Statewide cash rental rates also increased across all land quality classes in 2020. The largest increase was in low-quality land, which increased by 5.4%, average-quality increased 4.8%, and top-quality land increased 4%.