A new survey from Purdue University suggests Hoosier farmland prices in June have improved over last year, though the impact of the COVID-19 pandemic remains unclear. The 2020 Purdue Farmland Value and Cash Rents Survey says the majority of the gains in farmland values occurred between June and December of last year.
The report says between June and December, top-quality, average-quality, and poor-quality farmland values increased by 5.5%, 5.0% and 8.7% respectively. However, between December 2019 and June 2020, those values saw declines of 1%, 1.7% and 2.2%, respectively.
“Given the disruptions across the food value chain and deep economic uncertainty, it is difficult to posit what the next year has in store for Indiana farmland market,” said Purdue Associate Professor Todd Kuethe, who authored the survey. “The COVID-19 pandemic is a global phenomenon that will likely continue to disrupt trade patterns and income flows around the world. Everyone is hoping for a quick economic recovery, but the degree to which COVID-19 will impact land values is yet to be seen.”
The survey also reports statewide cash rental rates increased across all types of land quality last year.
The survey, which is conducted each June, is published in the Purdue Agricultural Economics Report. You can view the full results of the survey by clicking here.