Statewide Farmland Values Continue Modest Increase

T he Purdue land values survey revealed a statewide increase of 3.2% in the value of average-quality bare tillable land in the year ending in June 1992, about double the tiny increase of 1991-92. The USDA estimate for the year ending January 1 was 5%. The Federal Reserve Bank of Chicago survey of bankers indicated a 4% increase for the year ending March 31 in “good” farmland in the northern two-thirds of Indiana. According to the Purdue survey, this is the sixth consecutive year of increasing Indiana land values. Topquality land values are now 44% above the low levels of 1987, but are still 35% below the high of 1981. Furthermore, inflation of about 27% reduces the “real” increase in top and average land values since 1987 to 13%. Compared to a year ago, the current number of farmland transfers was estimated to be up by 30% of the respondents, down by 26%, and the same by 44%. Only 7.5% of the respondents reported that there currently is more land on the market than a year ago; 43% said less, and 50% said the same.