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Farmland prices going up in much of Indiana

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Low interest rates and a limited supply are driving up prices for Indiana farmland.

A September study by Purdue University found prices were as much as 18 percent higher than in 2011, and some appraisers say they continue to go up.

Appraiser Barton Barker said eastern Indiana sales prices have ranged from $6,000 to as high as $11,000 an acre recently.

Purdue agricultural economist Craig Dobbins told the Connersville News-Examiner that demand for farmland is high despite the summer's drought. He said he expects more farm sales than usual this fall.

Tillable land is drawing the highest prices, and real estate agents say there are more buyers than sellers because farmers know the value of their land.

Dobbins attributed the increased values to Indiana's strong agricultural economy.

Farmland prices have also risen in counties surrounding Indianapolis, including Hamilton, IBJ reported in a story early this year.

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  • Supply and Demand
    The developers do not cause urban sprawl. People cause it when they demand neighborhoods further away. I doubt very much that developers would be interested in building developments that people did not demand. There is a demand for both types. Many people want to live in a more urban environment, many want to live in the cornfields. We have developers that cater to both.
  • Makes Sense
    Why wouldn't go up? Not in my lifetime, but in my grand childrens lifetime, there will not be much farm land left. It is all being turned into Walmarts. There is plenty of land that is covered with concrete that can be used for new buildings and stores, but builders and developers keep buying up fields and causing urban sprawling. This; however, is not an issue yet, but will become one.
    • Which farmers?
      The article didn't say which farmers, Indiana farmers, or are they outside investers who are buying up available acreage? It disturbs me if many of our local farmers will lose out in the bids for higher prices.

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