INDIANA (WEHT) – Farmland values in Indiana are at record highs according to the annual Purdue Farmland Value and Cash Rents Survey.
According to the study, top quality farm ground in Indiana is selling for $9,785 per acre. That is up 14 percent from last year, and it exceeds the previous record set in 2014.
Statewide cash rental rates increased across all land quality classes in 2021. Average rental rates increased by 3.9 percent for top quality land, from $259 to $269 per acre. The cash rental rates for average and poor quality lands both increased by 4.6 percent to $227 and $183, respectively. At the regional level, the largest rental rate increases for top and average quality land were both in the Southeast region (11.5 percent and 6.4 percent), and the largest rental rate increases for poor quality land were in the North region (5.5 percent). Across all three land quality classes, the highest per acre cash rent was observed in the West Central region.
Researchers say a unique mixture of economic forces including net farm income, interest rates, inflation and alternative investments led to the jump in prices.