Purdue’s annual land rent survey updated

For all of those interested, the most highly requested resource from Purdue University was recently updated. That resource is the Purdue University Farmland Value Survey data. Results from the 2017 survey contained a mixture of increases and decreases.

As a whole, the 2017 Purdue Farmland Value Survey found the value of top-quality land throughout the state remained steady with only a slight increase. However, average and poor quality farmland experienced minor decreases in value. The average value of bare Indiana cropland ranged from $5,280 per acre for poor quality land (a 1.4 percent decrease from 2016) to $8,529 per acre for top-quality land (a 0.2 percent increase from 2016).

The average corn yield for top-quality land was 200 bushels per acre and 139 bushels per acre for poor quality land.

The 2017 survey had a mixture of decreases and increases for cash rent throughout the state. On average, cash rents range between $163 per acre for poor quality land and $253 per acre for top-quality land. Cash rents increased by 3.8 percent for poor quality land and decreased 1.6 percent for top-quality land since June 2016.

The value for farmland moving out of agriculture (transition land) increased this year. The survey revealed there was a 5.2 percent increase in the average value of transition land since June 2016. The average value of transition land in June 2017 was $11,056 per acre.

The average value of recreational land also increased by 8.5 percent since June 2016. The average value of recreational land in June 2017 was $3,724 per acre. It is important to note that transition and recreational land values are quite volatile and have a wide range of values.

For individuals in our area it is probably of more importance to look at the results for the West Central Region. The West Central Region (consisting of Benton, Carroll, Fountain, Montgomery, Parke, Putnam, Tippecanoe, Vermillion, Warren and White counties), had cropland values that ranged from $6,209 per acre for poor quality land and $9,241 per acre for top-quality land.

Cash rents for the West Central Region varied from $193 per acre for poor quality land to $279 per acre for top-quality land (average quality land was $235 per acre). For the West Central Region, cropland values and cash rent values decreased from 2016 to 2017 (cash rent for poor quality land stayed the same). The average corn yield for top-quality land was 207 bushels per acre and 154 bushels per acre for poor quality land in this region.

Producers may also want look at values for the Southwest Region due to the similarities in topography and soil productivity. The Southwest Region (consisting of Clay, Daviess, Dubois, Gibson, Greene, Knox, Martin, Owen, Pike, Posey, Spencer, Sullivan, Vanderburgh, Vigo and Warrick counties), had cropland values that ranged from $3,982 per acre for poor-quality land and $8,984 per acre for top-quality land.

Cash rents for the Southwest Region varied from $140 per acre for poor quality land to $257 per acre for top-quality land (average quality land was $194 per acre). For the Southwest Region, cropland values and cash rent values decreased from 2016 to 2017. The average corn yield for top-quality land was 208 bushels per acre and 126 bushels per acre for poor-quality land in this region.

Please realize that the Purdue University Farmland Value Survey data is provided to landlords and tenants as a starting point when negotiating their rental agreements. The final rental amount will need to be adjusted based on numerous items including the size of the field, drainage, soil fertility, ease of access for farm equipment, and much more.

To obtain your own copy of the PAER report, contact the local Extension Office or go to: http://www.agecon.purdue.edu/extension/pubs/paer

Visit www.extension.purdue.edu/putnam or contact the local Purdue Extension Office by calling 653-8411 for more information regarding this week’s column topic or to RSVP for upcoming events. It is always best to call first to assure items are ready when you arrive and to RSVP for programs. While many publications are free, some do have a fee.

Upcoming Events

Sept. 12 – Master Gardener Roundtable, 6 p.m., Fairgrounds.

Sept. 18 – Fair Board annual meeting, 6:30 p.m., Fairgrounds.

Sept. 19 -- Indiana Extension Homemaker Achievement Night program, 7 p.m.

Sept. 21 -- IEHA Leader Lesson, 6 p.m.