Kokomo Tribune; Kokomo, Indiana

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March 27, 2013

Purdue: Indiana farmland values continue to rise

WEST LAFAYETTE, Ind. —

A Purdue University survey indicates that Indiana farmland values are continuing to rise despite the severe drought last summer, and farm managers and rural appraisers expect the trend to continue in the short term.

The survey was conducted at a meeting last month of the Indiana Chapter of Farm Managers and Rural Appraisers. Purdue Extension agricultural economist Craig Dobbins says the news should signal caution for potential buyers because farmland buyers who borrow large sums of money could end up in a financial bind, especially if commodity prices fall.

Those surveyed disagreed on the market's five-year outlook. Fifty-three percent of respondents thought farmland values would be higher, 27 percent thought there would be no change and 20 percent expected values to decrease.

 

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