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Annual Purdue land rent survey update
Throughout the year, many individuals ask what the “going rate” is for farmland rental prices. That is a difficult question to answer.
The rate fluctuates and is highly dependent on the individual farm ground being discussed. That is why when asked, Purdue Extension provides a range of values based on the annual Purdue Farmland Value Survey and stresses the importance of not simply utilizing the values given.
Instead, landlords and tenants are told the final rental amount will need to be adjusted based on numerous items, including the size of the field, drainage, soil fertility, ease of access for farm equipment and much more.
The 2024 Purdue Farmland Value Survey found the average value of bare Indiana cropland increased. The average value of bare Indiana cropland ranged from $9,071 per acre for poor quality land (a 4.4 percent increase from 2023) to $14,392 per acre for top-quality land (a 4.8 percent increase from 2023). The average corn yield for poor quality land was 167 bushels per acre and 226 bushels per acre for top-quality land.
The 2024 survey average for Indiana cash rent saw some changes. On average, cash rents ranged between $204 per acre for poor quality land and $313 per acre for top-quality land. Cash rents decreased by 3.73 percent for poor quality land and increased by 2.29 percent for top-quality land since June 2023.
For individuals in our area, it is probably of more importance to look at the results for the West Central Region. The West Central Region (consisting of Benton, Carroll, Fountain, Montgomery, Parke, Putnam, Tippecanoe, Vermillion, Warren and White counties), had cropland values that ranged from $9,432 per acre for poor quality land and $13,941 per acre for top-quality land. Cash rents for the West Central Region varied from $231 per acre for poor quality land to $339 per acre for top-quality land (average-quality land was $284 per acre). For the West Central Region, cash rents decreased by 5.02 percent for poor quality land and increased by 2.10 percent for average quality land and 3.55 percent for top-quality land since June 2023. The average corn yield for poor quality land was 179 bushels per acre, 204 bushels per acre for average quality land, and 233 bushels per acre for top-quality land in this region.
Producers may also want to look at values for the Southwest Region due to the similarities in topography and soil productivity. The Southwest Region (consisting of Clay, Daviess, Dubois, Gibson, Greene, Knox, Martin, Owen, Pike, Posey, Spencer, Sullivan, Vanderburgh, Vigo and Warrick counties), had cropland values that ranged from $7,644 per acre for poor quality land and $16,078 per acre for top-quality land. Cash rents for the Southwest Region varied from $182 per acre for poor quality land to $323 per acre for top-quality land (average quality land was $251 per acre). For the Southwest Region, cash rent values increased from 2023 to 2024. The average corn yield for poor quality land was 149 bushels per acre, 191 bushels per acre for average quality land, and 226 bushels per acre for top-quality land in this region.
To obtain your own copy of the 2024 Purdue Farmland Value Survey Results, contact the local Extension Office or go to: https://ag.purdue.edu/commercialag/home/paer-publication/2024-08-paer-purdue-far....
As a reminder, the values and information found within the survey should be adjusted for your individual situation when determining your rental agreement.
Visit www.extension.purdue.edu/putnam or contact the local Purdue Extension Office at 653-8411 for more information regarding this week’s column topic or to RSVP for upcoming events. It is always best to call first to assure items are ready when you arrive and to RSVP for programs. While many publications are free, some do have a fee.
Upcoming Events:
Aug. 30 – My Record of 4-H Achievement due.
Aug. 30 – Junior Leader 4-H manuals due.
Sept.. 17 – Considerations When Growing Your Business Staff (non-financial decisions) webinar, 1-2 p.m. Register at https://isbdc.ecenterdirect.com/events/16810.
Sept. 17. – Oct.. 29 (Tuesdays only) – Becoming the Employer of Choice Webinar Series, 12-1 p.m. More info and register at: https://tinyurl.com/2cp4nzmv.