The value of Indiana farmland rose 14.7% to 19.1%, depending on soil productivity, for the year ending in June. That's according to the June 2013 Purdue Farmland Value Survey released today. The survey, conducted by Purdue extension agricultural economist and Kim Cook, research associate, also found statewide cash rents rose 9.4% to 10.9% annually.
According to the survey, the value of top-quality farmland posted the strongest increase -- up 19.1% to an average value of $9,177 an acre. Average-quality farmland rose 17.1% to a value of $7,446 an acre. Poor-quality ground increased 14.7% to an average value of $5,750 an acre. Top-quality farmland averages 193 bu. per acre while average-quality ground averages 160 bu. and poor-quality farmland averages 127 bu. per acre.
The survey found top-quality farmland posted the largest increase in average rent, up $29 an acre, or 10.9%. Average rent for average-quality farmland rose $21 and acre, up 10.1%, and rent for poor-quality farmland rose $15 an acre, up 9.4%. The estimated cash rent was $294 an acre on top-quality farmland, $229 an acre for average-quality farmland and $174 per acre for poor-quality farmland. Cash rent per bushel of corn ranged from $1.37 to $1.52 per bushel.
The West Central region of the state continues to have the highest per-acre farmland values, the survey indicates. The value of top-, average- and poor-quality farmland was $10,948, $8,955 and $7,206 per acre, respectively. The lowest farmland values are in the southeast region where top-, average- and poor-quality farmland have values of $4,873, $3,904 and $3,065 an acre, respectively.
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