Indiana farmland prices reach record high this year

WEST LAFAYETTE, Ind. — Indiana farmland prices reached record highs in 2024, according to Purdue Farmland Value and Cash Rents Survey results.

The average price of top-quality farmland reached $14,392 per acre, a 4.8% increase from June 2023.

Average quality farmland increased 3.7% to $11,630 per acre, and poor-quality farmland increased 4.4% to $ $9,071 per acre.

“While farmland prices increased between 2023 and 2024, survey respondents noted that much of the growth appears to have taken place in the latter half of 2023,” said Todd Kuethe, the survey’s author.

“A number of forces, such as high interest rates and lower farm incomes, are placing downward pressure on prices, but the limited supply of land is keeping prices firm.”

The change in farmland prices varied significantly across regions and quality grades, according to the report.

The southwest region experienced exceptionally high appreciation rates, especially for top- and average-quality land, while the southeast region saw the most pronounced declines across all quality grades.

Top-quality land in the southwest now surpasses the central region in price per acre. However, the central region continues to hold the highest values for average- and poor-quality land.

Respondents expect a modest decline in farmland prices through the rest of 2024, though prices are anticipated to remain slightly above those from June 2023, Kuethe said.

Land transitioning out of agricultural production rose in value by 21.6%, driven by large-scale development projects, while recreational land prices dipped slightly.

Statewide cash rents saw minimal changes, with some variation across regions, reflecting broader trends in land values, the report said.

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