Indiana farmland prices soar to record highs in 2022 – Seymour Tribune

The Purdue Farmland Worth and Money Hire Survey suggests Indiana farmland costs grew at a file tempo between June 2021 and June 2022, exceeding earlier highs set in 2021.

Statewide, top-quality farmland averaged $12,808 per acre, up 30.9% from the identical time final yr.

The common per acre value of average-quality farmland equally elevated by 30.1% to $10,598. Poor high quality farmland costs exhibited the most important enhance of 34.0% to $8,631.

“A number of elements are influencing the rise in farmland costs, together with constructive internet farm incomes, comparatively robust commodity costs, inflation and excessive farmer liquidity,” mentioned Todd Kuethe, Purdue affiliate professor and the Schrader Endowed Chair in Farmland Economics and survey creator. “Nevertheless, rising rates of interest are related to elevated prices of borrowing, which put downward strain on purchases financed via mortgages.”

Statewide money rental charges additionally elevated throughout all land high quality courses in 2022. Common money rents elevated by 11.5% for top-quality land, 10.8% for average-quality land and 13.2% for poor-quality land. The will increase in money rents have been the very best noticed because the 2011-12 interval.

Throughout the three high quality grades, money rents additionally reached a file excessive in 2022 at $300 per acre for high-quality farmland, $252 for average-quality land and $207 for poor-quality land.

On the regional degree, the most important money rental price will increase for top- and average-quality land have been within the northeast (21.3% and 13.2%, respectively), and the most important enhance for poor-quality land was within the southwest area (18.6%). Throughout all three high quality grades, the very best per acre common money hire was noticed within the west central area.

Whereas rental charges throughout all three high quality grades elevated in virtually all areas, the money rental charges grew at a slower price than market costs. In consequence, hire as a share of land worth declined relative to 2021.

The value appreciation charges for farmland transitioning out of agricultural manufacturing or bought for leisure functions surpassed the earlier file development charges noticed in 2011.

Statewide, the common value of transitional land was up 36.5% from June 2021 with a median value per acre of $24,240. Leisure land costs grew by 21.8% to a median per acre value of $9,121. For the rest of 2022, respondents count on transitional land to extend modestly by 2.3%, whereas the worth of leisure land is anticipated to carry comparatively secure.

For in-depth evaluation on the survey, the Purdue Heart for Industrial Agriculture will host a free webinar from 1 to 2 p.m. Aug. 24. Be part of Purdue agricultural economists Kuethe, James Mintert and Michael Langemeier as they break down the Purdue Farmland Values Survey and USDA Land Values report, focus on advertising methods for 2022 corn and soybean crops and make projections for 2023 corn and soybean returns.

Register for the free webinar at purdue.ag/landvalues2022.

Purdue’s Division of Agricultural Economics conducts the Purdue Farmland Worth and Money Hire Survey every June and publishes it within the Purdue Agricultural Economics Report.

The survey is produced via the cooperation of quite a few professionals educated of Indiana’s farmland market. These professionals offered an estimate of the market worth for naked poor, common and top-quality farmland in December 2021, June 2022 and a forecast worth for December 2022.