Stay Informed

The price of farmland in Indiana and across the U.S. has risen at a record rate, according to experts – and whether that’s good news or bad news depends on a farmer’s individual situation.

“It’s great if you want to sell but bad if you want to buy,” noted Andy Tauer, Indiana Farm Bureau executive director of public policy.

The Land Values 2022 Summary, released in late summer by the U.S. Department of Agriculture’s National Agricultural Statistics Service, shows agricultural land values increased by $420 an acre over 2021, the largest numerical increase since the survey first began in 1997 and at 12%, the largest percent increase since 2006.

“This annual report provides one of many indicators of the overall health of the agricultural economy and illustrates yet another heightened production cost and barrier to profitability faced by farmers and ranchers,” noted American Farm Bureau Federation economist Daniel Munch in Market Intel, a market and policy analysis service provided by AFBF.

Record increases in land prices also were recorded in the Purdue Farmland Value and Cash Rents Survey, which suggests Indiana farmland prices grew at a record pace between June 2021 and June 2022, exceeding previous highs set in 2021.

Statewide, according to the Purdue survey:

• Top-quality farmland averaged $12,808 per acre, up 30.9% from the same time last year.
• Average-quality farmland averaged $10,598 per acre, an increase from the previous year of 30.1%.
• Poor quality farmland prices exhibited the largest increase of 34.0% to $8,631.

Statewide cash rental rates also increased across all land quality classes in 2022, the Purdue survey showed. Average cash rents increased by 11.5% for top-quality land, 10.8% for average-quality land, and 13.2% for poor-quality land. These increases are the highest observed since the 2011–2012 period, Purdue added.

Land prices aren’t specifically listed as a legislative priority for the 2023 Indiana General Assembly, but property taxes are.

The main concern with taxes during the 2023 session is that there could be an effort to relieve homeowners’ property taxes by shifting the burden from homes to farms, Tauer said.

A recorded webinar about Purdue’s land value survey can be found on Purdue’s YouTube channel. More on INFB’s policy priorities can be found at www.infb.org/public-policy/national-issues and www.infb.org/public-policy/state-issues.