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Farmland Values Down In 2014 -- Just As Analysts Predicted

Sylvia Bao

Indiana farmland values declined in all three categories last year for the first time since 2009 -- but a Purdue economist says the drop was expected.

In Purdue’s latest land value survey, top-quality Hoosier farmland values dropped a little more than 5-percent in the last year. 

Average farmland values decreased by nearly 4-percent, while low-quality values are down just shy of 5-percent. 

But Purdue economist Michael Langemeier says he’s not surprised – revenue from crop sales have been down, which usually leads to a drop in land value. 

And Langemeier says the decline could continue for as much as 3-5 years – so he says farmers should be careful about buying new assets.

“That would include machinery, buildings and land.  That doesn’t mean you don’t purchase assets that you need, but you do need to be very cautious," Langemeier says.

The only area of the state in which farmland values didn’t drop is southwest Indiana, where prices for the best land are up 13-percent.  Langemeier says that’s likely because of strong corn and soybean yields in the region.

Brandon Smith is excited to be working for public radio in Indiana. He has previously worked in public radio as a reporter and anchor in mid-Missouri for KBIA Radio out of Columbia. Prior to that, he worked for WSPY Radio in Plano, Illinois as a show host, reporter, producer and anchor. His first job in radio was in another state capitol, in Jefferson City, Missouri, as a reporter for three radio stations around Missouri. Brandon graduated from the University of Missouri-Columbia with a Bachelor of Journalism in 2010, with minors in political science and history. He was born and raised in Chicago.
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