WEST LAFAYETTE, Ind. – The Purdue Farmland Value and Cash Rents Survey suggests farmland prices throughout Indiana have risen to all-time highs in June of 2021. Statewide, top of the range farmland averaged $9,785 per acre, up 14.1% from the identical time final 12 months. The high progress fee for top-quality farmland was intently adopted by the expansion in average- and poor-quality farmland prices, which elevated by 12.5% (to $8,144) and 12.1% (to $6,441), respectively. Across all land high quality courses, 2021 per-acre farmland prices exceeded the earlier information set in 2014.
“A singular mixture of financial forces, together with internet farm revenue, anticipated revenue progress, crop and livestock prices, rates of interest, exports, inflation, different investments, U.S. coverage, and farmers’ liquidity, all performed a significant factor in the worth enhance we’re experiencing,” stated Todd H. Kuethe, Purdue affiliate professor and the Schrader Endowed Chair in Farmland Economics and survey creator.
That’s uncommon, he stated.
“Normally we’ll see constructive worth stress from one or two market forces; nonetheless, this June, survey respondents indicated that every one 10 forces we requested them about had been placing upward stress on land values,” he stated.
Statewide money rental charges elevated throughout all land high quality courses in 2021. Average rental charges elevated by 3.9% for top-quality land, from $259 to $269 per acre. The money rental charges for average- and poor-quality lands each elevated by 4.6% to $227 and $183, respectively. At the regional stage, the biggest rental fee will increase for top- and average-quality land had been each in the Southeast area (11.5% and 6.4%), and the biggest rental fee will increase for poor-quality land had been in the North area (5.5%). Across all three land-quality courses, the best per-acre money lease was noticed in the West Central area.
Rent as a share of June land worth decreased barely in 2021, suggesting that money rental charges appreciated slower than farmland prices. Some portion of the distinction in appreciation charges between farmland values and money rents might mirror adjustments in expectations between fall 2020, when 2021 rents had been negotiated, and the 2021 rising season.
For extra in-depth evaluation on the survey, the Purdue Center for Commercial Agriculture will host a free webinar from 12:30-1:30 p.m. ET Aug. 20. Join Purdue agricultural economists Kuethe, James Mintert and Michael Langemeier as they break down the Purdue Farmland Values Survey and USDA Land Values report, talk about advertising methods for 2021 corn and soybean crops, and make projections for 2022 corn and soybean returns. Register at no cost.
The division of agricultural economics conducts the Purdue Farmland Value and Cash Rent Survey every June and publishes it in the Purdue Agricultural Economics Report. The survey is produced by the cooperation of quite a few professionals educated of Indiana’s farmland market. These professionals supplied an estimate of the market worth for bare- poor-, average-, and top-quality farmland in final December and June, and a forecast worth for this coming December.
Writer: Kami Goodwin, [email protected]
Source: Todd H. Kuethe, [email protected]
Agricultural Communications: 765-494-8415;
Maureen Manier, Department Head, [email protected]
Agriculture News Page
https://www.purdue.edu/newsroom/releases/2021/Q3/indiana-farmland-prices-hit-record-high-in-2021.html
