My name is Nolan Sampson, and I am an agricultural real estate agent in Indiana with Halderman Real Estate & Farm Management. I specialize in farmland sales, farm management, appraisals, and investment guidance for individuals and institutions. In today’s environment, with volatile stock markets, inflationary pressures, and uncertainty in traditional investments, farmland continues to stand out as a stable, income-producing asset.
In this article, I’ll share an in-depth market analysis of Indiana farmland values, returns on investment (ROI), and the broader forces shaping the land market. Whether you are a farmer, investor, or landowner considering expansion, this review will help you understand how farmland performs as an investment class in Indiana.
Why Indiana Farmland Investment Matters
Farmland has historically offered strong risk-adjusted returns, often outperforming equities and bonds in periods of economic uncertainty. According to AcreTrader’s Indiana Farmland Returns Report, farmland has produced annualized returns of around 10–12% over the past 30 years, when combining appreciation and income from cash rents.
Three reasons farmland continues to be a sought-after asset:
Finite supply – Indiana farmland is limited, highly productive, and in high demand.
Income generation – Cash rent or crop-share leases provide steady annual income, with 2025 cash rents at record highs.
Long-term appreciation – Despite recent volatility, Indiana farmland values remain near historic highs.
Current Indiana Farmland Market Trends
The Purdue Farmland Value Survey (2025) shows Indiana land values remain resilient despite moderating slightly from the 2022 peak.
Top-quality Indiana farmland: averaging over $15,000 per acre
Average-quality farmland: around $11,500–$13,000 per acre
Cash rents: $325–$350 per acre for top-quality ground; $250–$280 for average
Cap rates have tightened to 2.5–3%, signaling investor confidence in appreciation and farmland’s inflation-hedge qualities.
Who Is Buying?
Farmers remain the dominant buyers of Indiana farmland, accounting for roughly two-thirds of purchases. However, investor activity has grown steadily, now making up close to 40% of transactions. This dual demand base underscores farmland’s unique role as both an operational necessity and a financial asset.
ROI Drivers in Indiana Farmland
Appreciation
Indiana farmland values have grown at an average annual rate of 6–7% since 2000. Importantly, values are still only slightly below their 2022 all-time highs when adjusted for inflation.
Cash Rent Income
Cash rents continue to provide stable returns:
High-quality ground: $325–$350 per acre
Average ground: $250–$280 per acre
Lower-quality ground: $190–$220 per acre
Surveys show very few landlords plan to reduce rents in 2026, suggesting stability in income returns even if commodity prices soften.
Cap Rates
Indiana farmland cap rates below 3% are among the lowest on record. Investors are clearly prioritizing long-term capital preservation and appreciation potential over immediate cash flow.
Market Forces Shaping Indiana Farmland
Interest Rates
Farm loan interest rates have climbed above 7%, the highest in nearly two decades. While this adds financing pressure, limited land supply has prevented major price declines.
Farm Income
USDA forecasts show net farm income increasing 40% in 2025, buoyed by livestock receipts and continued federal support. Indiana producers have benefited from renewable fuels demand, with biofuels supporting higher corn and soybean basis values in the state.
Inflation & Input Costs
Since 2011, farm input costs have climbed over 40%, while output prices rose less than 3%. This squeeze makes operational efficiency critical but also reinforces farmland’s attractiveness as a hedge: land values typically rise alongside inflationary environments.
Renewable Energy Potential
Renewables are reshaping land economics. Solar leases, in some Indiana counties, are fetching $800–$1,000 per acre annually, which when capitalized equates to implied land values far above traditional row crop ground. Wind energy also adds measurable value, often $500–$1,000 per acre, providing upside in areas suitable for turbines.
Risk Factors for Indiana Farmland
While Indiana farmland is a stable long-term investment, it carries risks:
Commodity volatility: Lower corn and soybean prices directly pressure farm incomes.
Policy shifts: Biofuel credits, tariffs, and global trade deals significantly affect demand.
Liquidity limits: Farmland is not a quick-turn asset and may take months to sell in soft markets.
Analysts expect Indiana farmland values could correct by 3–10% in late 2025–2026 if global commodity supply remains high and interest rates stay elevated.
Why Indiana Farmland Stands Out
Indiana farmland offers one of the most compelling opportunities in U.S. agriculture thanks to:
World-class soils: Highly productive corn and soybean ground with yields among the nation’s best.
Strong demand base: Farmers and investors actively competing for limited supply.
Renewable energy integration: Solar and wind leases creating additional value streams.
Resilience: Even during downturns, Indiana land has historically retained its value relative to other asset classes.
Conclusion & Call to Action
Indiana farmland continues to demonstrate why it is a cornerstone investment for both farmers and long-term investors. With limited supply, strong demand, renewable energy opportunities, and decades of appreciation, farmland in our state provides stability and growth potential unmatched by many other assets.
As a licensed Indiana agricultural real estate agent with Halderman Real Estate, I help clients evaluate, acquire, manage, and sell farmland investments across the state. If you are considering farmland investment—or would like a professional market analysis of your property—please reach out.
📞 Call me at 219-575-1486
📧 Email: nolans@halderman.com
Let’s build your Indiana farmland investment strategy together.
