Farmland values have dropped for only the second time since the 1980s farm crisis prompted a wave of foreclosures. The Department of Agriculture issued a report last week that shows farmland values in the lower 48 states declined $10 to average $3,010 per acre. Cropland values declined one percent to average $4,090 per acre, while pastureland was unchanged at $1,330 per acre. Lower farm income over the last few years had not impacted land values until recently. The trend in land prices is likely to be similar to the 1980s, when values fell for three years. While the current skid may not match the magnitude of that slump, analysts say the decline is likely to continue. The biggest drop was in Kansas, down 7.4 percent to average $1,880 per-acre.
The Corn Belt remained the most expensive region, even as prices fell 0.9 percent to average $6,290 per acre. In February, USDA said declining commodity prices will push farm income down 2.8 percent to $54.8 billion this year, less than half of the 2013 record.
Indiana Land Values
The Indiana farm real estate value, including land and buildings, averaged $7,150 per acre, according to Greg Matli, State Statistician of the USDA, NASS, Indiana Field Office. Farm real estate values were unchanged from 2015. Indiana is in the Corn Belt region, which also includes Illinois, Iowa, Missouri, and Ohio. The Corn Belt region value was $6,290 per acre, down 1 percent from 2015. The value of farmland in states bordering Indiana was: Illinois, $7,400 per acre; Kentucky, $3,350 per acre; Michigan, $4,800 per acre; and Ohio, $5,700 per acre.
The Corn Belt region saw a 1.9 percent decrease to $6,710 per acre. The average value of cropland in the U.S. decreased 1 percent to a value of $4,090 per acre. Indiana’s pasture value was $2,600 per acre, unchanged from 2015. Indiana’s cropland cash rent was $192.00 per acre in 2016, down $5.00 from the previous year. Cropland cash rents in the Corn Belt region decreased $9.00 from last year to $202.00 per acre. The cropland cash rents in the States bordering Indiana was: Illinois, $221.00 per acre; Kentucky, $143.00 per acre; Michigan, $127.00 per acre; and Ohio, $150.00 per acre. Pasture cash rents in the Corn Belt region decreased 2.6 percent to $37.00 per acre. Pasture cash rent in Indiana was $38.00 per acre.
Source: NAFB News Service