WEST LAFAYETTE, Ind. (WANE) — A Purdue University survey showed Indiana farmland prices grew at a record pace between June 2021 and June 2022, exceeding previous highs set in 2021.
The Purdue Farmland Value and Cash Rents survey found that top-quality farmland averaged nearly $13,000 per acre, up 30.9% from the previous year.
Average-quality farmland increased in price per acre by 30.1% since 2021, while poor-quality farmland prices increased by 34% in the last year.
“Multiple factors are influencing the increase in farmland prices, including positive net farm incomes, relatively strong commodity prices, inflation and high farmer liquidity,” said Purdue associate professor Todd H. Kuethe. “However, rising interest rates are associated with increased costs of borrowing, which put downward pressure on purchases financed through mortgages.”
Statewide cash rental rates also increased across all land quality classes in 2022, especially in northeast Indiana.
Cash rental rates for top-quality and average-quality farmland in northeast Indiana were at 21.3% and 13.2% respectively, and both figures were the highest of any region in Indiana.
The Purdue Center for Commercial Agriculture will host a free webinar Wednesday, Aug. 24, to provide an in-depth analysis on the survey.