Purdue Extension Corner
For all of those interested, the most highly requested resource from Purdue has been updated. Last week, the annual Purdue Agricultural Economics Report (PAER) on farmland values and cash rent was released. The headlines shared the good news to us all that “Indiana’s Farmland Market Continues Moving Higher.”
As a whole, the 2012 Purdue Farmland Value Survey found that the average value of bare Indiana cropland ranged from $5,013 per acre for poor quality land to $7,704 per acre for top quality land. That is a 14.3 percent to 18.1 percent increase in value since June of 2011. The average corn yield for top quality land was 192 bushels per acre and 126 bushels per acre for poor quality land.
The 2012 survey did indicate that cash rent was going up throughout the state. Cash rents range between $159 per acre for poor quality land to $265 per acre for top quality land. Cash rents increased by 12.8 percent for poor quality land and 15.2 percent for top quality land since June of 2011.
For the first time in three years, the value for farmland moving out of agriculture (transitional land) increased. The surveyed revealed that there was a 7.2 percent increase in the value of transitional land since June of 2011. The average value of transitional land in June 2012 was $8,505 per acre but ranged from $2,500 to $21,000 per acre.
For individuals in our area it is probably of more importance to look at the results for the Southwest region. The Southwest region (consisting of Vigo, Clay, Owen, Sullivan, Greene, Knox, Daviess, Martin, Gibson, Pike, Dubois, Posey, Vanderburgh, Warrick, and Spencer counties), had cropland values that ranged from $4,393 per acre for poor quality land to $7,868 per acre for top quality land (average quality land was $6,075 per acre). Cash rents for the Southwest region varied from $142 per acre for poor quality land to $254 per acre for top quality land (average quality land was $195 per acre).
For livestock producers, it is important to note that average annual rent for pasture was determined to be $73 per acre with a carrying capacity of 2.0 acres per cow throughout the state (based on 131 survey responses). For the Southwest region, it was determined to be $63 per acre with a carrying capacity of 2.3 acres per cow (based on 18 survey responses).
The average rent for established alfalfa or alfalfa-grass hay was determined to be $142 per acre and $107 per acre for established grass hay throughout the state (based on 87 and 84 survey responses, respectfully). For the Southwest region, it was determined to be $111 per acre for established alfalfa or alfalfa-grass hay and $70 per acre for established grass hay (based on seven survey responses).
For the state, there were 276 survey responses and 33 survey responses for the Southwest region, unless otherwise noted. To obtain your own copy of the PAER report, contact your local Extension Office or go to: http://www.agecon.purdue.edu/extension/pubs/paer/pdf/ PAER8_ 2012.pdf.
As always, if you have any questions or would like information on any agriculture, horticulture, or natural resource topic, then please contact your local Purdue Extension Office at 812-448-9041 in Clay County, or 829-5020 in Owen County. You can also reach me directly via email at: email@example.com. Purdue University is an equal opportunity/equal access/ affirmative action institution.
Upcoming opportunities available to you through Purdue Extension include:
•September 2-8 – Going Local Week.
•September 3 – Extension Office closed for holiday.
•September 8 – Nature Day, 9:00 a.m. to 1:00 p.m., Clay County Fairgrounds.
•October 4-6 – State Master Gardener Conference, Hamilton County Fairgrounds. For more information, visit: http://126.96.36.199/2012-mastergardener state-conference-2/.
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