(To view the whole Agricultural Economics Report, please open the attachment at the bottom of this page)
In this issue:
The 2015 Purdue Land Values and Cash Rent Survey shows the general direction to be lower. Average farmland values were down 4% to 5% across the state and cash rents were down 1% to 2%. Surprisingly, some regions and land classes had increases, so look closely at Tables 1 and Table 2!
What about the future direction? By reading this article you can find respondents’ opinions of the expected direction for the rest of this year, and for the next five years. Plus, they share their opinions of the factors driving land markets.
Interested in 2015 rents for pasture, hay land, or irrigated farmland? Our second article reports on survey results of average rents for these uses by area of the state. Dr. Dobbins has also included the values of irrigated farmland and average rental rates for grain bins. Record cattle prices have pasture rents generally moving higher this year.
In our third article, three professors provide a look back 56 years to explore implications for the future. A couple of lessons they demonstrate are: 1. Land values are currently very high in relationship to earnings; and 2. History says than when you pay a high price relative to earnings your average return for the next 10, or even 20 years, has tended to be low.