WEST LAFAYETTE, Ind. (AP) – A Purdue University study shows Indiana’s worst drought in nearly a quarter of a century didn’t stop farmland values from continuing to grow in 2012.
The study released Tuesday shows the value of high-productivity land jumped by 19% to more than $9,000 per acre. Average-productivity land increased 17% to nearly $7,500 per acre. Poor-productivity land was up by nearly 15% to $5,750 per acre.
Purdue Extension agricultural economist Craig Dobbins says high net farm income, low interest rates and high farmland demand with limited supply combined to push the land values up.
The study says farmland cash rents also increased statewide by about 10%. High-productivity land rents increased $29 per acre, average-quality land by $21 per acre, and rent for poor-quality land by $15 per acre.