Purdue’s Annual Land Rent Survey
For all of those interested, the most highly requested resource from Purdue University has been updated. Last week, the annual Purdue Agricultural Economics Report (PAER) on farmland values and cash rent was released. The headlines shared the good news with all of us, “Up Again: Indiana’s Farmland Market in 2013.”
As a whole, the 2013 Purdue Farmland Value Survey found that the average value of bare Indiana cropland ranged from $5,750 per acre for poor quality land to $9,177 per acre for top quality land. That is a 14.7% to 19.1% increase in value since June of 2012. The average corn yield for top quality land was 193 bushels per acre and 127 bushels per acre for poor quality land.
The 2013 survey did indicate that cash rent was going up throughout the state. Cash rents range between $174 per acre for poor quality land and $294 per acre for top quality land. Cash rents increased by 9.4% for poor quality land and 10.9% for top quality land since June of 2012.
The value for farmland moving out of agriculture (transitional land) increased for the second year in a row. The surveyed revealed that there was a 24.4% increase in the average value of transitional land since June of 2012. The average value of transitional land in June 2013 was $9,500 per acre but ranged from $2,500 to $45,000 per acre.
For individuals in our area it is probably of more importance to look at the results for the Southwest region. The Southwest region (consisting of Vigo, Clay, Owen, Sullivan, Greene, Knox, Daviess, Martin, Gibson, Pike, Dubois, Posey, Vanderburgh, Warrick, and Spencer Counties), had cropland values that ranged from $4,908 per acre for poor quality land and $9,252 per acre for top quality land (average quality land was $7,085 per acre). Cash rents for the Southwest region varied from $155 per acre for poor quality land to $294 per acre for top quality land (average quality land was $216 per acre).
For livestock producers, it is important to note that average annual rent for pasture was determined to be $94 per acre with a carrying capacity of 2.0 acres per cow throughout the state (based on 116 survey responses). For the Southwest region, it was determined to be $75 per acre with a carrying capacity of 2.4 acres per cow (based on 13 survey responses).
The average rent for established alfalfa or alfalfa-grass hay was determined to be $175 per acre and $136 per acre for established grass hay throughout the state (based on 85 and 84 survey responses, respectfully). For the Southwest region, it was determined to be $142 per acre for established alfalfa or alfalfa-grass hay and $88 per acre for established grass hay (based on 8 and 9 survey responses, respectfully).
For the state, there were 261 survey responses and 29 survey responses for the Southwest region, unless otherwise noted. To obtain your own copy of the PAER report, contact your local Extension Office or go to: http://www.agecon.purdue.edu/extension/pubs/paer/
As always, if you have any questions or would like information on any agriculture, horticulture, or natural resource topic, then please contact your local Purdue Extension Office at 448-9041 in Clay Co. or 829-5020 in Owen Co. or reach me directly at firstname.lastname@example.org. Purdue University is an equal opportunity/equal access/affirmative action institution.
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