Despite last summer’s severe drought, a recent Purdue University survey shows Indiana farmland values continue to increase.
Purdue Extension agricultural economist Craig Dobbins says land values for average productivity land is estimated at were in the neighborhood of $8,510 an acre which he adds was up strongly from a year ago. “Cash rents,” he says, “were at $278 an acre – which is also up fairly strong from last year.”
While land prices look good right now – Dobbins cautions potential buyers. “We could suddenly find ourselves in a position where the market decided there is plenty of corn and the price drops pretty quickly,” he says. “One needs to be sure a purchaser can weather an event like that.”
Because it could potentially put land buyers in a financial bind.