Last week, the annual Purdue Agriculture 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 the average value of bare Indiana cropland ranged from $5,013 per acre for poor quality to $7,704 per acre for top quality land.
That is a 14.3 percent increase in value since June 2011.
The highest 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 cash rent was going up throughout the state.
Cash rents range between $159 per acre for poor quality land and $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 2011.
For the first time in three years, the value for farmland moving out of agriculture (transitional land) increased.
The survey revealed there was a 7.2 percent increase in the value of transitional land since June 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) has cropland values that ranged from $4,393 per acre for poor quality land and $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 to $254 per acre for top quality (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 log on to www.agecon.purdue.edu/extension/pubs/pae....
As always, if you have any questions or would like more information on any agriculture, horticulture, or natural resource topic, then please contact your local Purdue Extension Office at 448-9041 in Clay County or 812-829-5020 in Owen County or reach me directly at email@example.com.
Purdue University is an equal opportunity/equal access/affirmative action institution.
Upcoming opportunities available to you through Purdue Extension include:
* Sept. 2-8 -- Going Local Week,
* Sept. 3 -- Extension Office closed, holiday,
* Sept. 8 -- Nature Day, 9 a.m.-1 p.m., Clay County Fairgrounds, and
* Oct. 4-6 -- State Master Gardener Conference, Hamilton County Fairgrounds. For more information, log on to http://126.96.36.199/2012-master-gardene....