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Last updated on Tuesday, December 2, 2014
(UNDATED) - Indiana’s farmland values could decline.
Farmland values tripled over the past decade to an average of nearly $7,500 per acre, but those record-setting highs could drop in the next two to three years.
Michael Langemeier, associate director of the Center for Commercial Agriculture at Purdue University, says he blames plummeting crop prices saying farmers had record yields, but with lower prices making net returns low - an example was corn was over $100 an acre decline.
A downturn isn't significant cause for alarm, but Lagemeier expects farmers to see a softening in their cash rental rates by as much as ten percent.
He says when crop prices strengthen, land values will likely follow.
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