(NAFB) The value of farmland in the Midwest, particularly the I-States of Iowa, Illinois, and Indiana, hasn’t always been exceptional when compared to the rest of the United States. From before President Abraham Lincoln established the USDA in 1862 until about 1950, all U.S. farmland was about the same price. The widespread adoption of hybrid seed corn was the sea change that set the Midwest apart, and it began to outpace the value of farmland in other parts of the nation. It was the export market of the 1970s that really changed things. Here’s how Todd Kuethe from Purdue University explains it.
They probably should not have cheered. The rivalry is great. However, Iowa, as the most dynamic land market, tends to lead with both the highest highs and the steepest decline.
Iowa’s cash rents for this crop season were down about $20 an acre. Illinois was down about $5 an acre. Indiana cash rent this year increased by 1.5 to 2 percent statewide, continuing a trend from previous years. The price of Indiana farmland, likewise, has not yet followed the trend lower. Iowa State’s farmland values survey, released in December, showed a drop of about three percent, on average. That’s far different than Indiana.
If you search YouTube for “farmland values Purdue,” you’ll find two recent AgCast videos from Todd Kuethe. One on Land for Sale and one on Land for Rent.
