Farm Credit Mid-America releases farmland value study

LOUISVILLE, Ky. — While farmland across the region had a 7.1% increase over the past year, Indiana stood out as the sole state in Farm Credit Mid-America’s territory to experience a drop, according to the association’s July 2026 benchmark study.

The study showed a highly localized and increasingly selective land market. Hoosier land values fell by an average of 1.9% annually, cooling off after rapid appreciation from 2021 to 2023.

Unlike nearby states like Kentucky, up 10.9%, and Ohio, up 10.7%, all three regions of Indiana saw mild decreases in land values:

• Northern Indiana — down 2.4%.

• Central Indiana — down 1.6%.

• Southern Indiana — down 1.6%.

“Farmland values remain strong overall, but there is no single farmland market,” said Jennifer Riethman, head of collateral production at Farm Credit Mid-America.

“Land quality, location, buyer intent and local economic pressures are creating different conditions from one community to the next. Producers need to understand what is happening locally and evaluate each opportunity based on their own operation.”

According to the report, several types of demand continue to support farmland values even as the economics for traditional row crop production become more challenging.

Strong cattle markets are contributing to demand for pasture ground in some areas, while recreational and rural residential buyers are competing for wooded and recreational properties.

Development and residential demand also continue to influence values near growing population centers, including Indianapolis.

“Producers cannot control or consistently predict where the land market will go next,” Riethman said.

“What they can do is understand their numbers, know what their operation can support and determine how a potential purchase fits their long-term goals. Preparation matters more than prediction.”

As farmers look ahead, Farm Credit Mid America offered the following tips:

• Monitor land trends in your local market, not just statewide averages.

• Review your balance sheet and borrowing capacity with your financial officer.

• Define your long-term land ownership and growth goals.

• Establish financial boundaries before purchase opportunities arise.

• Approach cash rent conversations with preparation and open communication.

• Lean on trusted advisers who understand both your operation and your local market.