Historic farmland prices

WABASH, Ind. — Indiana farmland prices grew at a record pace between June 2021 and June 2022, according to the Purdue Farmland Value and Cash Rents Survey.

Top quality farmland averaged $12,808 per acre, up 30.9% from the same time last year. The average per-acre price of average quality farmland increased by 30.1% to $10,598. Poor quality farmland prices exhibited the largest increase of 34.0% to $8,631.

Howard Halderman, president of Halderman Real Estate Services, discussed land prices during a webinar.

“Cropland values were stable in the 2015-2020 time frame, but then jumped up 30%,” he said. “Some statistics suggest upwards of 40%. Regardless, there have been huge increases in the last 12 months in cropland values.

“We’re at the all-time high, even when you adjust for inflation. It’s a great spot to be if you’re a land owner, if you’re somebody looking to finance your property. You probably are in great collateral shape. If you’re trying to buy land, it makes it more difficult.”

Haldeman said the company is seeing farmland sell in “the teens” — sometimes $15,000 to $16,000 an acre and upwards for good quality land.

This can be shocking to landowners, he said, as they face uncharted territory.

However, every farm varies. Each farm is unique in terms of its market, soil types, drainage and more.

“We’re in a bullish time period,” Halderman said. “There are higher prices and higher demand for rental land, and that equates to higher land values.”

Going forward, he expects a slower increase in farmland values.