Purdue Survey Shows Indiana Farmland Prices Hit Record High in 2021

The Purdue Farmland Value and Cash Rents Survey shows farmland prices across Indiana reached all-time highs in June of 2021. Statewide, top-quality farmland averaged $9,785 per acre, up 14.1 percent from the same time last year. The high growth rate for top-quality farmland was closely followed by the growth in average and poor-quality farmland prices, which increased by 12.5 percent and 12.1 percent, respectively. Across all land quality classes, 2021 per-acre farmland prices exceeded the previous records set in 2014. Purdue says a unique combination of economic forces, including net farm income, expected income growth, crop and livestock prices, interest rates, exports, inflation, alternative investments, U.S. policy, and farmers’ liquidity, all led to price increase. Cash rental rates also increased 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.