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Drought didn't stop Indiana farmland value growth

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The worst drought in nearly a quarter century didn't stop Indiana farmland values from continuing to grow in 2012, a Purdue University study released Tuesday shows.

High net farm income, low interest rates and high farmland demand with supply combined to increase land values upward by 14.7 percent to 19.1 percent, depending on productivity, according to the study. Farmland rental rates rose by about 10 percent.

"While the 2012 Indiana crop suffered from the worst drought since 1988, the increase in farmland values did not bother to slow down," Craig Dobbins, a Purdue Extension agricultural economist, said in a news release.

The drought sent corn and soybean prices soaring to all-time highs, the study said. Combined with crop insurance indemnities, that meant better-than-expected farm incomes.

High-productivity land values jumped by 19.1 percent, to $9,177 per acre, the study said. Average-productivity land increased 17.1 percent, to $7,446 per acre, and poor-productivity land was up by 14.7 percent, to $5,750 per acre.

Cash rents for high-productivity land increased by 10.9 percent or $29 per acre. Rent for average-quality land was up by 10.1 percent, or $21 per acre, and rent for poor-quality land was up 9.4 percent, or $15 per acre.

Land values, cash rents and farmland productivity were estimated for the study by surveying Indiana rural appraisers, agricultural loan officers, Farm Service Agency personnel, farm managers and farmers, Purdue said.

The 261 respondents also were asked to estimate long-term corn yields for poor, average and top-quality land, Purdue said. The state's average long-term corn yields for poor, average and top-quality land were 127,160 and 193 bushels per acre, respectively.

The consensus among respondents on future farmland values and cash rents is that increases will slow and, in some regions, values might stall or decline slightly, Dobbins said.

Forty-three percent of respondents said they thought farmland values would increase by an average 11.7 percent over the next five years, or an average annual increase of 2.2 percent. Thirty-five percent of respondents thought farmland values would decline by an average of 12.3 percent, or an annual decline of 2.3 percent. The remaining 22 percent expected no change.

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  1. So much for Eric Holder's conversation about race. If white people have got something to say, they get sued over it. Bottom line: white people have un-freer speech than others as a consequence of the misnamed "Civil rights laws."

  2. I agree, having seen three shows, that I was less than wowed. Disappointing!!

  3. Start drilling, start fracking, and start using our own energy. Other states have enriched their citizens and nearly elminated unemployment by using these resources that are on private land. If you are against the 'low prices' of discount stores, the best way to allow shoppers more choice is to empower them with better earnings. NOT through manipulated gov mandated min wage hikes, but better jobs and higher competitive pay. This would be direct result of using our own energy resources, yet Obama knows that Americans who arent dependent of gov welfare are much less likely to vote Dem, so he looks for ways to ensure America's decline and keep its citizens dependent of gov.

  4. Say It Loud, I'm Black and Ashamed: It's too bad that with certain "black" entertainment events, it seems violence and thuggery follows and the collateral damage that it leaves behinds continues to be a strain on the city in terms of people getting hurt, killed or becoming victims of crimes and/or stretching city resources. I remember shopping in the Meadows area years ago until violence and crime ended make most of the business pack you and leave as did with Lafayette Square and Washington Square. Over the past 10 to 12 years, I remember going to the Indiana Black Expo Soul Picnic in Washington Park. Violence, gang fights and homicides ended that. My great grandmother still bears the scares on her leg from when she was trampled by a group of thugs running from gun fire from a rival gang. With hundreds of police offices downtown still multiple shootings, people getting shot downtown during Black Expo. A number of people getting shots or murdered at black clubs around the city like Club Six on the west side, The Industry downtown, Jamal Tinsley's shot out in front of the Conrad, multiple fights and shootings at the skating rinks, shootings at Circle Center Mall and shooting and robberies and car jackings at Lafayette Mall. Shootings and gang violence and the State Fair. I can go on and on and on. Now Broad Ripple. (Shaking head side to side) Say It Loud, I'm Black and I'm Ashamed.

  5. Ballard Administration. Too funny. This is the least fiscally responsive administration I have ever seen. One thing this article failed to mention, is that the Hoosier State line delivers rail cars to the Amtrak Beech Grove maintenance facility for refurbishment. That's an economic development issue. And the jobs there are high-paying. That alone is worth the City's investment.

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