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West Central Indiana Farmland Values 2021 and Expectations for 2022


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It’s undoubtedly been an interesting agricultural climate in 2021. For landowners, it’s been a true seller’s market for the past year.

Through various resources, most notably the Purdue Agricultural Economics Report (PAER), we’ve evaluated land values from the past year to provide an informed snapshot of the West Central Indiana region including the counties of Benton, Tippecanoe, Warren, Montgomery, Fountain, Vermillion, White, and Boone.

Farmland Values & Price Per Acre 2021

The uncertainty of the stock market and inflation caused many investors to seek out diversification and look elsewhere for stable investments. Stocks offer the highest returns but also hold the highest risk. Bonds are safe investments but offer low returns. In regards to risk & return on investment, farmland is nestled between stocks and bonds. Additionally, times of recession historically prove to be fortuitous for farmland values & sales.

Chart taken from PAER webinar August 20, 2021

Farmland as an investment became more attractive than ever before due to accommodating agricultural policies and historically low interest rates. Purdue economists don’t expect interest rates to fluctuate much in the coming year.

Chart taken from PAER webinar August 20, 2021

West Central Farmland

Chart created using data from PAER July 26, 2021

As reported within the annual PAER, the average price per acre of farmland in West Central was $9,400 from June 2020 – June 2021. Additionally, the average price per acre of farmland for the state of Indiana was $8,123.

From June 2020-June 2021 Farmland values have increased by nearly 17% across all soil qualities in West Central Indiana. Statewide, values have increased 12.9% across all soil qualities.

Farmland Cash Rents

Statewide, rents have increased between 4-5%. This may not be good news for tenants but excellent for landowners. This increase is still below the highest cash rent rates seen in 2014. Also, this percentage increase is at a much lower rate of increase than those of farmland values.

Chart taken from PAER webinar August 20, 2021

Transitional Land

Millions of Americans began working from home and discovered that they may not enjoy urban living as much as they thought they did. When the commute was removed from the daily routine, people decided they’d rather have open spaces and greenery as opposed to convenience. This created a boom for the real estate markets in more rural areas as well as an increased demand for transitional land for homesites.

From June 2020 to June 2021, this demand caused transitional land values to increase by over 17%. Furthermore, this value is expected to increase by an additional 3% over the next year.

Chart created using data from PAER July 26, 2021


It is true; we are seeing rapidly rising inflation rates. Economists expect we may exceed 5% inflation by the end of 2022. As a country, we’ve not seen inflation rates exceed 4% since 1990. However, this is not expected to persist as much of this is due to logistical constraints created by the pandemic.

Purdue economists anticipate land values to increase through the remainder of 2021 and these record-high values are expected to increase further.

If you’re considering a land sale or auction, there’s never been a better time.

Chart created using data from PAER July 26, 2021

More Land Value | The Broker You Choose Matters.

The median price per acre of farmland values in West Central Indiana as reported within the PAER was $9,382, and the median price per farmland sold by Geswein Farm & Land Real Estate Brokers was $9,600 during the same time period. With farmland prices as high as $12,800 per acre YTD 2021, our team helps our clients receive significant returns for their farmland investments.

As cash rents & input costs ratchet upward going into 2022, one has to wonder if there will be a bubble about to burst? Or will the farmland market continue to rise above the records levels being recorded in 2021?

Information has been gathered from sources deemed reliable but not guaranteed and is subject to change without notice. The information contained herein is provided for informational purposes only and not to be construed as tax or legal advice. Always seek the advice of an attorney for the legal or tax consequences of a transaction and/or related transactions.

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