Review of the 2013 Farm Land Values Report for West Central Indiana
“The West Central Indiana Region continues to have the highest per acre farmland values.”
– Up Again: Indiana’s Farmland Market in 2013 | Purdue Univerity 2013 PAER
Since 1991, the Purdue University School of Agricultural Economics has conducted an annual survey and report of land values and cash rents known as the PAER. Through the cooperation of farmers, land appraisers, land brokers, farm loan officers and Farm Credit and Farm Service agents from the USDA and Purdue, the annual land values report is held in high regard for it’s position on land values and cash rents.
Highlights from the Farmland Values Report Include:
- Farmland value per bushel of projected long-term corn yield (calculated by taking farmland value divided by number of bushels) is the highest in the West Central Indiana region, ranging from $51.11 to $54.20 per bushel.
- The highest per acre cash rent is $350 per acre for top quality land in the West Central region. Rents across land qualities in this region ranged from $222 to $350 per acre.
- Land value for top quality farmland was $10,948
- Average quality farmland was $8,955
- Poor quality farmland was $7,206 per acre
According to the report, the West Central region also remained the strongest in the state of Indiana for cash rents of both top quality, average quality and poor quality farm land.
There is an old saying that the real estate market is always local in nature. As such, the Annual Purdue Agricultural Economics Report holds great value for our local Indiana region and the trends we may see.
As August quickly approaches, the corn and soybean crop in this region looks strong, thanks in part to a very rainy June. The release of the 2014 Purdue Ag Economics Report is anticipated as being made public in August. The data and results reported will include average land values and cash rents from 2014. Many industry publications, websites and writers have varying opinions on the market as a whole, with many reporting it to be “more stable” and in many areas of the country on another increase. Federal banks are reporting that the farm belt is experiencing a softening, including parts of Indiana.
No matter which side of the fence you may be on, only one thing remains certain on the topic of land values in Indiana…the 2014 PAER, combined with grain markets, interest rates and input costs are a complex and ever changing formula. We look forward to the new report and as always, we welcome a conversation with you on the topic.