Agricultural land values

What do you think will happen to agricultural land values in the near future in a region you are familiar with, and why?

 

 

Sample Solution

If we experience increases in farmland values in this year or so, the increases will likely be closer to the long-run average than to the increases experienced in 2022. Long-term average increases are about 5% per year. Indiana farmland values were up 30% compared to one year earlier in Purdue University`s annual Farmland Values and Cash Rent Survey issued in August. Since then, anecdotal reports from farm managers and agriculture real estate agents indicate prices are still increasing. Relatively small tracts of farmland sold for $18,000 and $19,000 per acre earlier this fall. Unconfirmed reports for development land are much higher.

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