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WEST LAFAYETTE, Ind.

The Purdue Farmland Value and Cash Rents Survey suggests farmland prices across Indiana have risen to all-time highs in June of 2021. Statewide, top quality farmland averaged $9,785 per acre, up 14.1% 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% (to $8,144) and 12.1% (to $6,441), respectively. Across all land quality classes, 2021 per-acre farmland prices exceeded the previous records set in 2014. “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 played a major factor in the price increase we’re experiencing,” said Todd H. Kuethe, Purdue associate professor and the Schrader Endowed Chair in Farmland Economics and survey author. That’s rare, he said. “Normally we’ll see positive price pressure from one or two market forces; however, this June, survey respondents indicated that all 10 forces we asked them about were putting upward pressure on land values,” he said. Statewide cash rental rates increased across all land quality classes in 2021. Average rental rates increased by 3.9% 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% 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% and 6.4%), and the largest rental rate increases for poor-quality land were in the North region (5.5%). Across all three land-quality classes, the highest per-acre cash rent was observed in the West Central region.

Rent as a share of June land value decreased slightly in 2021, suggesting that cash rental rates appreciated slower than farmland prices. Some portion of the difference in appreciation rates between farmland values and cash rents may reflect changes in expectations between fall 2020, when 2021 rents were negotiated, and the 2021 growing season. For more in-depth analysis on the survey, the Purdue Center for Commercial Agriculture will host a free webinar from 12:30-1:30 p.m. ET Aug. 20. Join Purdue agricultural economists Kuethe, James Mintert and Michael Langemeier as they break down the Purdue Farmland Values Survey and USDA Land Values report, discuss marketing strategies for 2021 corn and soybean crops, and make projections for 2022 corn and soybean returns. Register for free. The department of agricultural economics conducts the Purdue Farmland Value and Cash Rent Survey each June and publishes it in the Purdue Agricultural Economics Report. The survey is produced through the cooperation of numerous professionals knowledgeable of Indiana’s farmland market. These professionals provided an estimate of the market value for bare- poor-, average-, and top-quality farmland in last December and June, and a forecast value for this coming December.

Success Stories

"We cannot say enough good things about Jesse. He helped us sell our farm land through an online auction process, and went above and beyond answering questions. He explained things in a way we could understand and kept us informed at every step in the process. Without hesitation we would recommend him to anyone!" The Steinke Family
"Hi Sherry We are very happy to inform you that we both have really enjoyed working with you and your company in the past two years. We are hoping to work with you again in the near future. Thank you so much for all your help and really appreciate everything that you have done from starting to end of this transaction. Please be safe in these tougher times. May God bless you! BTW, Please feel" E. Arige
"Hughes Real Estate went above and beyond in helping us get our aunt's property prepped and ready for sale. This included a house in town and farm land. They provided invaluable local expertise and were very professional and friendly. My family would recommend Hughes Real Estate with no reservations." Family of Millie H.
"Our family sold a fairly large parcel of farmland in Stevens County, Minnesota. It was a complicated property with different land characteristics and an existing CRP contract. We were very pleased with Jesse's representation. He had a lot of expertise and guided us through the different dynamics and options for selling the property. We highly recommend him." Jim J. and Karen H.
"Thank you for all you have done helping us sell our home, Sonia. It was a pleasure working with you! Best of luck in your future, you are an excellent realtor!" Mervin and Carole S.
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"I was very satisfied with Sherry’s performance as my Realtor, everything was great on her behalf. Thanks again, Sherry!" Bob M.
"Jesse was our real estate agent when we decided to sell our home. He came to our first appointment well prepared with area statistics on houses for sale, houses similar to ours and helped us easily come up with a selling price. Jesse was able to answer all our questions with accurate information. He listed our house on a Thursday morning and had the first showing two days later. This showing resulted in the sale" Shawn and Holly Rodahl Benson, MN
"The synopsis of our experience is that we, either as individuals, or as a family would recommend and/or hire Jesse Hughes a heartbeat. He’s that good, and your experience with him will be top shelf from start to finish and beyond. He’s earned a glowing review from us and here is how; After the passing of our parents, we 5 siblings were beyond fortunate, and inherited the family farm, the “home place” if you will," Eileen F, Maxine B, Maureen B, Clif P, & Joyce S.