I hope everyone has had a great week! As I sit down to write this column, the sun is finally shining, and today’s high is expected to reach 56 degrees. With a glimpse of spring on the horizon, thoughts turn to planting season, farms changing hands, and new beginnings for the next generation of farmers.

In my role as an auctioneer and real estate broker, I work with three primary types of farmland clients:

1. Farmers purchasing land to expand their operations.
2. Investors adding farmland to their portfolios for diversification.
3. Sellers who are either retiring from farming or settling an inherited estate.

A common question I hear from all three groups is: Is farmland a good investment? Alongside that, I’m often asked about current land values and where prices might be headed in the future.

Indiana Farmland Prices: 2000–2024

Over the past 24 years, Indiana farmland has proven to be a strong and stable investment. While there have been fluctuations due to economic conditions, interest rates, and commodity prices, the overall trend has been upward.

Average Indiana Farmland Prices Per Acre (2000–2024)

• 2000 – $2,715
• 2001 – $2,802
• 2002 – $2,892
• 2003 – $3,305
• 2004 – $3,278
• 2005 – $3,556
• 2006 – $3,770
• 2007 – $4,407
• 2008 – $5,003
• 2009 – $4,994
• 2010 – $5,310
• 2011 – $6,521
• 2012 – $7,704
• 2013 – $9,177
• 2014 – $9,177
• 2015 – $9,266
• 2016 – $8,508
• 2017 – $8,529
• 2018 – $8,668
• 2019 – $9,178
• 2020 – $8,579
• 2021 – $9,785
• 2022 – $10,598
• 2023 – $13,739
• 2024 – $14,392

Key Takeaways from the Data

• Strong Long-Term Growth: From 2000 to 2024, Indiana farmland values increased over 430%, demonstrating strong appreciation.
• Rapid Growth Periods: The most significant jumps occurred from 2010 to 2014, when prices nearly doubled due to high commodity prices and low interest rates.
• Market Corrections: Prices dipped slightly from 2015 to 2020, but remained stable before surging again in 2021–2024 due to inflation concerns, investor demand, and limited land supply.

Why Farmland Remains a Strong Investment

1. Steady Appreciation: Over the long term, farmland has consistently outpaced inflation, making it a reliable store of value.
2. Tangible Asset: Unlike stocks, farmland is a physical asset that generates income through rental agreements or crop production.
3. Limited Supply: Farmland is a finite resource, and demand continues to grow as global food needs increase.

What Will Happen to Prices in the Future?

While no one has a crystal ball, Indiana farmland is expected to remain a stable and attractive investment. Interest rates, commodity prices, and economic conditions will influence short-term fluctuations, but long-term demand is likely to keep values strong.

Whether you are a farmer looking to expand, an investor seeking portfolio diversification, or a seller considering a transition, understanding farmland values is crucial. If you are thinking about buying or selling, contact one of our team members to advice as to your specific situation.

As always, keep dreaming big, investing wisely, and remember—whether it’s homes, businesses, treasures, or transitions, we’re here to help you move forward.

Cheers,
Brandon Steffen