LAFAYETTE, Ind. (WTWO/WAWV) – According to a recent Purdue Farmland Value and Cash Rents Survey, Indiana farmland prices are once again hitting record highs for 2023.

Across the state, the average price of good quality farmland averages around $13,739 per acre, which shows a 7.3% increase from June of 2022. Whereas average or quality farmland costs $11,210 showing an increase of 5.8% and poor quality farmland costing $8,689 per acre at an 0.7% increase.

“While farmland prices reached a new peak in 2023, the appreciation rate from 2022 to 2023 was much lower than the record-high price growth observed between 2021 and 2022,” said Todd H. Kuethe, the Schrader Endowed Chair in Farmland Economics and the author of the survey.  “Farm incomes and liquidity are playing a role in boosting price growth; however, rising interest rates continue to put downward pressure on purchases financed through mortgages.”

Across Indiana, rent increased by a small amount between 2022 and 2023, however, all three quality grades of farmlands are at an all-time high.

Cash rental rates for all the quality of acreage including good, average, and poor have exceeded the previous highs set in the years 2013, 2014, and 2021.

Kuethe also said it’s important to note that these slight changes across the state tend to mask some of the larger variations across land qualities and regions. The highest cash rents, across all the quality options of land, were seen in the West Central region of Indiana.

There was also a noticeable divergence between the values for farmland that is transitioning from agricultural production to recreational purposes for 2023. Across Indiana, the per-acre value of farmland moving out of agricultural production rose by 4.1% between June 2022 and June 2023 to $25,228. Meanwhile, the value of recreational farmland fell by 10.4% to $8,170 per acre.

For further information on the survey, people can tune in to the Purdue Center for Commercial Agriculture podcast Purdue AgCast in which agricultural economists will discuss Indiana farmland values, cash rents, and results from the survey.