2016 land values drop in Indiana, but increase in Ohio
Research from Farm Credit Mid-America shows land values in Indiana are on the decline, but held steady in other parts of their coverage area.
Dennis Badger, vice-president of collateral risk management says land values dropped 7 percent in 2016. “This compares back to the peak in 2010 where Indiana experienced about a 27 percent gain,” he says. “In light of that high period – a decline of about 7 percent isn’t too concerning at this point. In 2015 Indiana experienced about a negative 3 percent decline overall.”
While a 7 percent decline is something to monitor – he tells Brownfield it isn’t as bad as other parts of the Corn Belt. “If you look out towards Nebraska and Iowa and some of the other areas that are influenced not only by growing crops but also some of the other livestock markets – they’ve seen some fairly significant declines,” he says. “Some of them in the negative double digit ranges.
Farm Credit Mid-America also covers Ohio, Kentucky, and Tennessee. Badger says Ohio actually saw an increase in land values this year. “We estimate they experienced a positive 1 percent gain,” he says. “I think some of that is a result of their diversity of agricultural products.”
Badger says even with the decline in land values – overall, Indiana is positioned well and the strength in the state’s ag economy will help farmers weather the current economic downturn.
AUDIO: Dennis Badger, Farm Credit Mid-America
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