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 2023 Purdue Farmland Value Survey found the average value of bare Indiana cropland increased. The average value of bare Indiana cropland ranged from $8,689 per acre for poor quality land (a 0.7%increase from 2022) to $13,739per acre for top quality land (a 7.3% increase from 2022).The average corn yield for poor quality land was165bushels per acre and 221 bushels per acre for top quality land.
The 2023 survey average for Indiana cash rent increased too. On average, cash rents ranged between $212 per acre for poor quality land and $306per acre for top quality land. Cash rents increased by 2.5% for poor quality land and 1.99% for top quality land since June of 2022.
For individuals in our area, it is probably of more importance to look at the results for the West CentralRegion. The West Central Region (consisting of Benton, Carroll, Fountain, Montgomery, Parke, Putnam, Tippecanoe, Vermillion, Warren, and White Counties), had cropland values that ranged from $9,321 per acre for poor quality land and $13,965 per acre for top quality land. Cash rents for the West CentralRegion varied from $243 per acre for poor quality land to $327per acre for top quality land (average quality land was $278per acre). For the West Central Region, cash rent values decreasedfrom 2022 to 2023. The average corn yield for poor quality land was171 bushels per acre and 227bushels 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 $7,182per acre for poor quality land and $12,8557 per acre for top quality land. Cash rents for the Southwest Region varied from $173per acre for poor quality land to $296 per acre for top quality land (average quality land was $239 per acre). For the Southwest Region, cash rent values decreased from 2022 to 2023. The average corn yield for poor quality land was160 bushels per acre and 227 bushels per acre for top quality land in this region.
To obtain your own copy of the 2023 Purdue Farmland Value Survey Results, contact your local Extension Office or go to:https://ag.purdue.edu/commercialag/home/purdue-agricultural-economics-report/. As a reminder, the values and information found within the survey should be adjusted for your individual situation when determining your rental agreement.
The Purdue Women in Agriculture Team is hosting a Ladies Night Out: Livestock Edition in Putnam County on September 19th at 6:30 PM at the Putnam County Fairgrounds. Participants will enjoy dinner and networking along with learning how to build a Veterinary Client-Patient Relationship (VCPR) and how it relates to obtaining animal health products. Additionally, participants will learn about administering medication through a hands-on activity. Cost is $10 per person (check or cash). Please register by September 16th.To register either contact Purdue Extension Putnam County at 765-653-8411 or go online at: https://tinyurl.com/WIASept23
Visit our homepage at www.extension.purdue.edu/putnam or you can contact the local Purdue Extension Office by calling 765.653.8411 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. Purdue University is an equal access/equal opportunity institution. All times listed are Eastern Time.
Sept. 1 – My Record of 4-H Achievement and Junior Leader 4-H Manuals due
Sept. 5 – Canning Garden Vegetables, Putnam Co. Fairgrounds, 7pm
Sept. 5 – Get WalkIN’ emails begin, email email@example.com to register by Sept. 1st
Sept. 11 – ServSafe Food Managers course and exam, register at https://cvent.me/l8DXv2
Sept. 11 – Venison Processing Workshop, Putnam Co. Fairgrounds, 6pm, RSVP required at 765-973-9281
Sept. 18 – Home Food Preservation workshop, Parke Co. Fairgrounds, $15, 11am-3pm, RSVP required at 765-569-3176
Sept. 19 – Ladies Night Out: Livestock Edition, Putnam Co. Fairgrounds, $10, 6:30pm, register at https://tinyurl.com/WIASept23
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