Purdue Farmland Value Survey finds fluctuating values

Throughout the year, many individuals ask what the “going rate” is for farmland rental prices. That is a difficult question to answer. The rate fluctuates and is highly dependent on the individual farm ground being discussed.

That is why when asked, Purdue Extension provides a range of values based on the annual Purdue Farmland Value Survey, and stresses the importance of not simply utilizing the values given. Instead, landlords and tenants are told 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.

As a whole, the 2019 Purdue Farmland Value Survey found the average value of bare Indiana cropland slightly decreasing.

The average value of bare Indiana cropland ranged from $5,405 per acre for poor-quality land (no change from 2018) to $8,212 per acre for top-quality land (a 5.3 percent decrease from 2018). The average corn yield for poor-quality land was 147 bushels per acre and 204 bushels per acre for top-quality land.

The 2019 survey average for Indiana cash rent decreased. On average, cash rents ranged between $166 per acre for poor-quality land and $249 per acre for top-quality land. Cash rents decreased by 1.2 percent for poor quality land and 4.6 percent for top quality land since June of 2018.

The value for farmland moving out of agriculture (transition land) increased this year. The survey revealed there was a 0.6 percent increase in the average value of transition land since June of 2018. The average value of transition land in June 2019 was $13,245 per acre. The average value of recreational land increased by 3.7 percent since June of 2018. The average value of recreational land in June 2019 was $3,673 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 $6,318 per acre for poor-quality land and $9,178 per acre for top-quality land.

Cash rents for the West Central Region varied from $195 per acre for poor-quality land to $284 per acre for top-quality land (average-quality land was $241 per acre). For the West Central Region, cash rent values decreased from 2018 to 2019. The average corn yield for poor-quality land was 156 bushels per acre and 218 bushels per acre for top-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 $4,408 per acre for poor-quality land and $8,167 per acre for top-quality land.

Cash rents for the Southwest Region varied from $134 per acre for poor-quality land to $233 per acre for top-quality land (average-quality land was $181 per acre). For the Southwest Region, cash rent values decreased from 2018 to 2019. The average corn yield for poor-quality land was 144 bushels per acre and 220 bushels per acre for top-quality land in this region.

To obtain a copy of the 2019 Purdue Farmland Value Survey, contact the local Extension Office or go to: https://ag.purdue.edu/agecon/Pages/Purdue-Agricultural-Economics-Report.aspx.

As a reminder, the values and information found within the survey should be adjusted for each individual situation when determining a rental agreement.

Visit our homepage at www.extension.purdue.edu/putnam or contact the 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.

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Upcoming events:

Aug. 27 – Women Walk Putnam County, 9 a.m., DePauw Nature Park

Sept. 2 – Extension Office closed for Labor Day holiday

Sept. 6 – My Record of Achievement due

Sept. 16 – Extension board meeting, 7 p.m., Extension Office

Sept. 18 – SWCD locally-led meeting, 6 p.m., SWCD Office

Sept. 19 – NCBA CLUSA “Farmer-to-Farmer: Your Key to International Agriculture” webinar, 12 p.m., register at https://tinyurl.com/y83ma4k4.