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STATE OF INDIANA INDIANA GOVERNMENT CENTER NORTH 100 NORTH SENATE AVENUE N1058(B) INDIANAPOLIS, IN 46204 PHONE (317) 232-3777 FAX (317) 974-1629 DEPARTMENT OF LOCAL GOVERNMENT FINANCE REFERENCE MATERIALS FOR VALUING AGRICULTURAL LAND FOR JANUARY 1, 2026 BASE RATE - $2,120 ---PAGE BREAK--- Index Pages: January 1, 2026 1-6 General Notes 7 & 8 Pages 73 & 74 from Chapter 2 of the Real Property Assessment Guidelines covering the valuation of agricultural land 9 & 10 Certification of Agricultural Land Base Rate Value for the Assessment Year of January 1, 2026 11-15 A paper written by Dr. D. Howard Doster & Dr. John M. Huie titled “A Method for Assessing Indiana Cropland - An Income Approach to Value” dated June 24, 1999. 16 Calculation of Final Agricultural Base Rate 17 Summary of Preliminary Table 218 – Annual Update 18 Cash Rent Calculations 19-24 Purdue Agricultural Economics Reports (PAER) which support Cash Rent calculations shown on Page 18 25 & 26 DLGF study on Average Net Tax Bill per Acre of Farmland 27-37 Interest Rate Summary & Supporting Documentation 38 Income Approach Summary for Producer-Owned Farm Ground 39 Calculation of Production Costs for Corns & Soybeans 40-42 Yields & Supporting Documentation 43-58 Grain Prices & Supporting Documentation 59-76 Purdue Crop Guides For The Years of 2020 - 2025 77-81 Calculation of Average Government Payments per Acre 82 An Overview of How the Calendar Is Used In Calculating the Agricultural Land Base Rate 83 History of the Agricultural Land Base Rates 2022 - 2026 ---PAGE BREAK--- General Notes for the Agricultural Land Market Value in Use for January 1, 2026, Rate of $2,120 December 2025 History: In compliance with the Town of St. John v. State Board of Tax Commissioners court case, the 2002 Real Property Assessment Guidelines contained a section on valuing agricultural land based on its value in use. A summary of the Department’s calculations can be found in Chapter 2, Page 100 of those guidelines, in Table 2-18. For the 2002 reassessment, the base rate for agricultural land was calculated to be $1,050 and remained unchanged for 2003 and 2004. Pursuant to 50 IAC 27-6-1(a), the department issued the annual rate for March 1, 2005, to be $880. In the 2005 Legislative Session, SEA 327 was passed. This bill contained a non-code provision that set the base rate for agricultural land for both March 1, 2005, and March 1, 2006, at $880. SEA 327 also contained language for March 1, 2007, which instructed the Department of Local Government Finance to adjust the Department’s methodology from a four-year rolling average to a six-year rolling average (IC 6-1.1-4-4.5). • The base rate for March 1, 2007, was calculated to be $1,140 per acre. • The base rate for March 1, 2008, was updated by removing 1999 data and adding 2005 data to the six-year average which resulted in a base rate of $1,200. • The base rate for March 1, 2009, was updated by removing 2000 data and adding 2006 data to the six-year average which resulted in a base rate of $1,250. • The base rate for March 1, 2010, was updated by removing 2001 data and adding 2007 data to the six-year average which resulted in a base rate of $1,400; however, in March of 2010, Senate Enrolled Act 396-2010 was signed into law which required the highest year of the six-year average to be excluded in the calculation. This change in the calculation lowered the base rate for March 1, 2010, from $1,400 to $1,290 when the 2007 data was excluded. • The base rate for March 1, 2011, was updated by removing the 2002 data, adding the 2008 data, and excluding the highest year (2008) of the six-year average to arrive at a base rate of $1,500. • The base rate for March 1, 2012, was updated by removing the 2003 data, adding the 2009 data, and excluding the highest year (2008) of the six-year average to arrive at a base rate of $1,630. • The base rate for March 1, 2013, was updated by removing the 2004 data, adding the 2010 data, and excluding the highest year (2010) of the six-year average to arrive at a base rate of $1,760. • The base rate for March 1, 2014, was updated by removing the 2005 data, adding the 2011 data, and excluding the highest year (2011) of the six-year average to arrive at a base rate of $2,050. • The base rate for March 1, 2015, was updated by removing the 2006 data, adding the 2012 data, and excluding the highest year (2011) of the six-year average to arrive at a base rate of $2,420; however, Senate Enrolled Act 436-2015 was passed which set March 1, 2015, base rate at $2,050 (unchanged from 2014). SEA 436-2015 also established a Agricultural Land Base Rate - Reference Material - Page 001 ---PAGE BREAK--- new method of calculating the base rate for 2016 which took the preceding year’s base rate and multiplied it times an assessed value growth quotient; however, in the 2016 legislative session, Senate Enrolled Act 308 repealed this new method and re-instated the previous method of using a six-year rolling average with the highest year excluded and added the requirement of using the most current data available and adjusting the capitalization rate after the preliminary base rate was determined. • The base rate for January 1, 2016, was updated by removing the 2007, 2008, & 2009 data, adding the 2013, 2014, & 2015 data, excluding the highest year (2013) of the six- year average, and adjusting the capitalization rates per SEA 308-2016 to arrive at a final base rate of $1,960. • The base rate for January 1, 2017, was updated by removing the 2010 data, adding the 2016 data, excluding the highest year (2013) of the six-year average, and adjusting the capitalization rates per SEA 308-2016 to arrive at a final base rate of $1,850. • The base rate for January 1, 2018, was updated by removing the 2011 data, adding the 2017 data, excluding the highest year (2013) of the six-year average, and adjusting the capitalization rates per SEA 308-2016 to arrive at a final base rate of $1,610. • The base rate for January 1, 2019, was updated by removing the 2012 data, adding the 2018 data, excluding the highest year (2013) of the six-year average, and adjusting the capitalization rates per SEA 308-2016 to arrive at a final base rate of $1,560. • The base rate for January 1, 2020, was updated by removing the 2013 data, adding the 2019 data, excluding the highest year (2014) of the six-year average, and adjusting the capitalization rates per SEA 308-2016 to arrive at a final base rate of $1,280. • The base rate for January 1, 2021, was updated by removing the 2014 data, adding the 2020 data, excluding the highest year (2020) of the six-year average, and adjusting the capitalization rates per SEA 308-2016 to arrive at a final base rate of $1,290. • The base rate for January 1, 2022, was updated by removing the 2015 data, adding the 2021 data, revising last year’s worksheets with current data, excluding the highest year (2021) of the six-year average, and adjusting the capitalization rates per SEA 308-2016 to arrive at a final base rate of $1,500. • The base rate for January 1, 2023, was updated by removing the 2016 data, adding the 2022 data, revising last year’s worksheets with current data, excluding the highest year (2021) of the six-year average, and adjusting the capitalization rates per SEA 308-2016 to arrive at a final base rate of $1,900. • The base rate for January 1, 2024, was updated by removing the 2017 data, adding the 2023 data, revising last year’s worksheets with current data, excluding the highest year (2021) of the six-year average, and adjusting the capitalization rates per SEA 308-2016 to arrive at a final base rate of $2,280. • The base rate for January 1, 2025, was updated by removing the 2018 data, adding the 2024 data, revising last year’s worksheets with current data, excluding the highest year (2021) of the six-year average, and adjusting the capitalization rates per SEA 308-2016 to arrive at a final base rate of $2,390. During the 2025 Legislative Session, SEA 1 changed the capitalization rate from 8% to This adjustment lowered the base rate from $2,390 to $2,120. Agricultural Land Base Rate - Reference Material - Page 002 ---PAGE BREAK--- • The base rate for January 1, 2026 was updated by removing the 2019 data, adding the 2025 data, revising last year’s worksheets with current data, excluding the highest year (2021) of the six-year average, and adjusting the capitalization rates per SEA 308-2016 and SEA 1-2025 to arrive at a final base rate of $2,120. SEA 308 & SEA 1 – The Calculation of the Ag Land Base Rate Indiana Code § 6-1.1-4-4.5… In making the annual determination of the base rate to satisfy the requirement for an annual adjustment for each assessment date, the department of local government finance shall, not later than March 1 of each year, determine the base rate using the methodology reflected in Table 2- 18 of Book 1, Chapter 2 of the department of local government finance's Real Property Assessment Guidelines (as in effect on January 1, 2005), except that the department shall adjust the methodology as follows: Use a six year rolling average adjusted under subdivision instead of a four year rolling average. Use the data from the six most recent years preceding the year in which the assessment date occurs for which data is available, before one of those six years is eliminated under subdivision when determining the rolling average. Eliminate in the calculation of the rolling average the year among the six years for which the highest market value in use of agricultural land is determined. After determining a preliminary base rate that would apply for the assessment date without applying the adjustment under this subdivision, the department of local government finance shall adjust the preliminary base rate as follows: If the preliminary base rate for the assessment date would be at least ten percent (10%) greater than the final base rate determined for the preceding assessment date, a capitalization rate of: for purposes of determining the preliminary base rate for the January 1, 2025, and the January 1, 2026, assessment dates, nine percent and (ii) for purposes of determining the preliminary base rate for assessment dates before January 1, 2025, and for assessment dates after December 31, 2026, eight percent shall be used to determine the final base rate. If the preliminary base rate for the assessment date would be at least ten percent (10%) less than the final base rate determined for the preceding assessment date, a capitalization rate of six percent shall be used to determine the final base rate. If neither clause nor clause applies, a capitalization rate of seven percent shall be used to determine the final base rate. In the case of a market value in use for a year that is used in the calculation of the six year rolling average under subdivision for purposes of determining the base rate for the assessment date: Agricultural Land Base Rate - Reference Material - Page 003 ---PAGE BREAK--- that market value in use shall be recalculated by using the capitalization rate determined under clauses through for the calculation of the base rate for the assessment date; and (ii) the market value in use recalculated under item shall be used in the calculation of the six year rolling average under subdivision Updates to Table 2-18 for January 1, 2026 Table 2-18 – Years: For January 1, 2025, the six years of data used in the calculations were: 2019, 2020, 2021, 2022, 2023, 2024 and 2025. Table 2-18 – Net Income from Cash Rents: Since agricultural land in Indiana is almost evenly divided between cash rent and owner- occupied production, the Department used an average of both types of income in its calculation. The data for cash rents came from three Purdue Agricultural Economics Reports (PAER). For the 2020 & 2021 rents, go to Table 4 found on Page 20 of this packet for the July 2021 report. For the 2022 & 2023 rents, go to Table 3 found on Page 22 of this packet for the August 2023 report. For the 2024 & 2025 rents, go to Table 3 found on Page 24 of this packet for the August 2025 report. From these tables, the Department used the statewide averages for average soil. There is also an adjustment to these amounts to reduce the rents for property taxes paid on the land. This adjustment was based on an annual study conducted by the Department of Local Government Finance. (Pages 25 & 26 of this packet) Table 2-18 – Net Income from Operating: This income represents the profits from the owner-occupied production of crops on agricultural land. The foundation for the calculations that the Department adopted comes from Table 1 (P-14) of June 24, 1999, Doster/Huie report. Doster/Huie Report – Table 1-Yields: The yields in this report were obtained from the Indiana Agricultural Statistics Service (IASS) for both corn and soybeans. The IASS publishes these statistics on an annual basis. Yield information for these four years can be found in the 1999-2000 publication for corn on Page 31 in the Final Yield per Acre column of the Crop Summary section and on Page 32 for soybeans. Doster/Huie Report – Table 1-Prices: The prices used in this report were for the month of November. They can be found in IASS publications for that time period. Note: The Department made an adjustment to this part of the calculation because the majority of the grain harvested in Indiana is not sold in November but throughout the year. This adjustment will be discussed later. Agricultural Land Base Rate - Reference Material - Page 004 ---PAGE BREAK--- Doster/Huie Report – Table 1-Sales: Yields for each type of crop (corn/soybeans) multiplied by the Price per Bushel for each type of crop equals Sales. Doster/Huie Report – Table 1-Less Variable Costs: This information can be found in the Purdue Crop Guide. This guide is an annual publication (ID-166). The dollar amount for each crop type can be found in the section titled “Estimated XXXX (year) Per Acre Production Costs in the column for Corn/Soybean Rotation for Average Soil. See the line for “Total direct cost per acre at harvest”. The costs include labor, seed, fertilizer, chemicals, machinery repairs, and fuel. Doster/Huie Report – Table 1-Crop Contribution Margin: Sales less Variable Costs equal Crop Contribution Margin for each type of crop (corn/soybeans). Doster/Huie Report – Table 1-Plus Government Payment: The publication adds government payments as a source of additional revenue for the land. This amount for each year was estimated by the authors of the publication. Doster/Huie Report – Table 1-Total Contribution Margin: This number represents the average of the Crop Contribution Margin for corn and soybeans plus one-half (1/2) of the amount for the government payment. (The sum of the three numbers is divided by two Doster/Huie Report – Table 1-Less Overhead: The overhead expense for machinery, drying/handling, & family/hired labor can be found in the Purdue Crop Guide (ID-166). The dollar amount for each crop type can be found in the section titled “Estimated 20___ (year) Per Acre Production Costs in the column for Corn/Soybean Rotation for Average Soil. See the lines for “Indirect charges per acre”. Doster/Huie Report – Table 1-Real Estate Tax: A deduction of $10 for real estate taxes was estimated by the authors. Doster/Huie Report – Table 1-Income: Total Contribution Margin less the Overhead Expenses of machinery, drying/handling, labor, & real estate taxes equals Income. Doster/Huie Report – Table 1-Estimated Land Value: The authors of the paper then averaged the four years (1996 – 1999) income and divided it by a 1999 interest rate to arrive at an Estimated Land Value of $971. Table 2-18 – Net Income from Operating: This income represents the profits from the owner-occupied production of crops on agricultural land. While the foundation for the calculations that the Department adopted comes from Table 1 of the June 24, 1999, Doster/Huie report, the Department did make some alterations to it. Agricultural Land Base Rate - Reference Material - Page 005 ---PAGE BREAK--- Adjustments Made To The Doster/Huie Report By the Department Years: The Department added the statistics for 1995 which were available and deleted the estimates for 1999 since interest rates and income data were not available. Price: The Department added two averages to the Doster/Huie report since this report used only November prices. Since only a small portion of Indiana’s grain is sold in November, the Department developed two annual averages for the calculation. The first average was the calendar year average of the grain prices which are published in the IASS book. The second average was the market year average. This average is calculated by the IASS and is a weighted average that is based on the end of the month grain price and the percentage of the total grain harvested that was sold that month. Interest Rate: Instead of using the 1999 St. Paul Farm Credit Bank interest rate, the Department chose to use the quarterly farm loan rates published by the Federal Reserve Bank of Chicago. The FRBC publishes an agricultural newsletter on a quarterly basis called the “AgLetter”. This newsletter provides interest rates on farm loans for operating loans, feeder cattle, and real estate. The Department averaged the interest rates for the operating loans and real estate categories. A study was conducted on different sources of interest rates between Purdue Agricultural Economics Reports, the St. Paul Farm Credit Bank, and the Federal Reserve Bank of Chicago. The study found that the rates varied from year to year but when averaged out over the four-year period were comparable. Summary of the January 1, 2026, Base Rate: The Department first calculated the Table 2-18 Base Rate with data for the years 2020, 2021, 2022, 2023, 2024, and 2025. Current data was used and last year’s worksheets were updated for this year’s calculation when needed. Next, the highest market value-in-use for one of the years (2021) in the six-year rolling average was eliminated from the calculation. Then the implementation of Senate Enrolled Act 308-2016 and Senate Enrolled Act 1-2025 determined the capitalization rate of which lowered the Preliminary Table 2-18 Base Rate of $3,020 to a Final Base Rate of $2,120. (Refer to Page 16 of this packet for a detailed comparison.) Agricultural Land Base Rate - Reference Material - Page 006 ---PAGE BREAK--- Chapter 2 Land Real Property Assessment Guidelines Page 73  units of measurement for agricultural land  classification of agricultural land into land use types  use of soil maps  calculating the soil productivity index  valuation of strip mined agricultural land  valuation of oil and gas interests Agricultural Land Base Rate Value The 2019 general reassessment agricultural land value utilizes the land’s current market value, which is based on the productive capacity of the land, regardless of the land's potential or highest and best use. The most frequently used valuation method for use-value assessment is the income capitalization approach. In this approach, use- value is based on the residual or net income that will accrue to the land from agricultural production. As illustrated in the following equation, the market value of agricultural land is calculated by dividing the net income of each acre by the appropriate capitalization rate. Market value = Net Income ÷ Capitalization Rate The net income of agricultural land can be based on either the net operating income or the net cash rent. Net operating income is the gross income received from the sale of crops less the variable costs (i.e. seed and fertilizer) and fixed costs (i.e. machinery, labor, property taxes) of producing crops. The net cash rent income is the gross cash rent of an acre of farmland less the property taxes on the acre. Both methods assume the net income will continue to be earned into perpetuity. The capitalization rate converts the net income into an estimate of value. The capitalization rate reflects, in percentage terms, the annual income relative to the value of an asset; in this case agricultural land. Conceptually, this capitalization rate incorporates the required returns to various forms of capital, associated risks, and the anticipated changes over time. Since agricultural land in Indiana is nearly evenly divided between cash rent and owner-occupied production, the Department utilized a six-year rolling average of both methods in determining the market value of agricultural land. The capitalization rate applied to both types of net income was based on the annual average interest rate on agricultural real estate and operating loans in Indiana for this same period. The table below summarizes the data used in developing the average market value. Agricultural Land Base Rate - Reference Material - Page 007 ---PAGE BREAK--- Chapter 2 Land Real Property Assessment Guidelines Page 74 Table 2-18 Agricultural Land Value NET INCOMES MARKET VALUE IN USE Year Cash Rent Operating Cap. Rate Cash Rent Operating Average 2013 204 341 8.00% 2,550 4,263 3,406 2014 205 171 8.00% 2,563 2,138 2,350 2015 198 -39 8.00% 2,475 -[PHONE REDACTED] 173 75 8.00% 2,163 938 1,550 2017 175 30 8.00% 2,188 375 1,281 2018 181 79 8.00% 2,263 988 1,625 Assessing Agricultural Land The agricultural land assessment formula involves identifying agricultural tracts using data from a detailed soil map, aerial photography, and local plat maps. Each variable of the land assessment formula is measured using various devices to determine its size and effect on the parcel’s assessment. The proper use of the soil maps, interpreted data, and unit values results in greater uniformity in the assessment process of agricultural lands. Indiana Code section 6-1.1-4-13(a) declares, “In assessing or reassessing land, the land shall be assessed as agricultural land only when it is devoted to agricultural use” [emphasis added]. Indiana Code section 6-1.1-4-13(e) states, “This section does not apply to land purchased for industrial or commercial uses.” Pursuant to Indiana Code section 6-1.1-4-13, land “devoted to agricultural use” shall be assessed as agricultural land. However, land “purchased for” an industrial or commercial uses shall not be assessed as agricultural land. Additionally, all land utilized for agricultural purposes is valued as agricultural land using a statewide base rate and a soil productivity index system. Unless provided elsewhere in the law, the Manual, or Guidelines, the parcel’s size does not determine the property classification or pricing method for the parcel. Rather, the property classification and pricing method are determined by the property’s use or zoning. For example, some commercial and industrial zoned acreage tracts devote a portion of the parcel to an agricultural use. The assessing official must classify these parcels as either commercial or industrial. However, the portions of land devoted to agricultural use are to be valued using the agricultural land assessment formula. Portions not used for agricultural purposes are to be valued using the commercial and industrial acreage guidelines. To illustrate: A major industrial corporation purchased a 40 acre cornfield to locate a corn processing facility in Indiana. After undergoing the local zoning process, the entire parcel was re-zoned from agricultural zoning to industrial zoning. The corporation has utilized 15 acres of the parcel by constructing a manufacturing and warehouse facility with the idea that the remaining 25 acres would be Agricultural Land Base Rate - Reference Material - Page 008 ---PAGE BREAK--- STATE OF INDIANA Page 1 of 2 INDIANA GOVERNMENT CENTER NORTH 100 NORTH SENATE AVENUE N1058(B) INDIANAPOLIS, IN 46204 PHONE (317) 232-3777 FAX (317) 974-1629 DEPARTMENT OF LOCAL GOVERNMENT FINANCE Certification of Agricultural Land Base Rate Value for Assessment Year 2026 This memorandum hereby serves to notify assessing officials of the agricultural base rate to be used for the January 1, 2026 assessment date: $2,120 per acre. Land used for agricultural purposes shall be adjusted consistent with the guideline methodology that was in effect on January 1, 2005 except, in determining the annual base rate, the Department of Local Government Finance (“Department”) shall adjust the methodology to use the lowest five years of a six year rolling average. Senate Enrolled Act 1 (2025) and Senate Enrolled Act 308 (2016) then requires a comparison of the preliminary Table 2-18 base rate to the prior year’s Table 2-18 base rate in order to determine the statutory capitalization rate to be used to calculate the final base rate for this assessment date. Those portions of agricultural parcels that include land and buildings not used agriculturally, such as homes, homesites, and excess land and commercial or industrial land and buildings, shall be adjusted by the factor or factors developed for other similar property within the geographic stratification. The residence portion of agricultural properties will be adjusted by the factors applied to similar residential properties. 50 IAC 27-6-1 The 2026 assessment year agricultural land value utilizes the land’s current market value in use, which is based on the productive capacity of the land, regardless of the land’s potential or highest and best use. The most frequently used valuation method for use-value assessment is the income capitalization approach. In this approach, use-value is based on the residual or net income that will accrue to the land from agricultural production. As illustrated in the following equation, the market value in use of agricultural land is calculated by dividing the net income of each acre by the appropriate capitalization rate. Market value in use = Net Income ÷ Capitalization Rate The net income of agricultural land can be based on either the net operating income or the net cash rent. Net operating income is the gross income received from the sale of crops less the variable costs (i.e. seed and fertilizer) and fixed costs (i.e. machinery, labor, property taxes) of producing crops. The net cash rent income is the gross cash rent of an acre of farmland less the property taxes on the acre. Both methods assume the net income will continue to be earned into perpetuity. The capitalization rate converts the net income into an estimate of value. The capitalization rate reflects, in percentage terms, the annual income relative to the value of an asset; in this case agricultural land. Conceptually, this capitalization rate incorporates the required returns to various forms of capital, associated risks, and the anticipated changes over time. Agricultural Land Base Rate - Reference Material - Page 009 ---PAGE BREAK--- Page 2 of 2 Since agricultural land in Indiana is nearly evenly divided between cash rent and owner-occupied production, the Department utilized a six-year rolling average (2020 to 2025) of both methods in determining the market value in use of agricultural land. The capitalization rate applied to both types of net income was based on the language contained in SEA 1 (2025) and SEA 308 (2016). The table below summarizes the data used in developing the average market value in use. SEA 1 (2025) & SEA 308 (2016) – Final Agricultural Land Base Rate NET INCOMES MARKET VALUE IN USE Year Cash Rent Operating Cap. Rate Cash Rent Operating Average 2020 192 141 9.00% 2,133 1,567 1,850 2021 206 343 9.00% 2,289 3,811 3,050 2022 230 319 9.00% 2,556 3,544 3,050 2023 233 260 9.00% 2,589 2,889 2,739 2024 230 48 9.00% 2,556 533 1,544 2025 229 29 9.00% 2,544 322 1,433 Average Market Value in Use $2,120 The statewide agricultural land base rate value for the 2026 assessment year will be $2,120 per acre. Dated this 31st day of December, 2025. Jason Cockerill, Commissioner Department of Local Government Finance Agricultural Land Base Rate - Reference Material - Page 010 ---PAGE BREAK--- A Method for Assessing Indiana Cropland An Income Approach to Value D. Howard Doster & John M. Huie, Purdue Ag Economists June 24, 1999 Summary A method for taxing agricultural cropland based on the income potential of the land can be developed. The method is illustrated below. Data components of this method include detailed soil maps, estimated yields and production costs by soil type, reported average yields by county, reported average Indiana November corn and soybean prices, USDA corn and soybean loan prices by county, and the interest rate on new Farm Credit Bank loans in the St Paul district. Using this information, a land value can be calculated for each soil type in each county in Indiana. Using detailed soil maps, county staff can then calculate income, land value, and tax due for each ownership parcel. Using state yields, prices, and costs for 1996, 1997, 1998, and estimates for 1999, income and land values are calculated below for average and high yield soil types. As shown in Table 1, the average land value is calculated to be $971. In Table 2, the high yield land is valued at $1510. As shown in the tables, incomes for 1996 and 1997 are much higher than incomes for 1998 and projected 1999. Though not shown, income for 1995 was much higher than projected income for 1999. Detailed soil maps Maps from The Natural Resource and Conservation Service (NRCS) are now available for all counties indicating the soil type of all land in the state. County staff have used this information in past years. For five counties, this soil type information has been transferred to a GIS data base. In these counties, county staff could identify land ownership units in the GIS data base and with appropriate computer software, calculate the real estate tax on cropland. In 1998, computer software was developed by Purdue Ag Economists for calculating income for user entered ownership parcels in Tippecanoe County. This program was shown at the July, 1998 Purdue Top Farmer Crop Workshop and the September, 1998 Prairie Farmer Farm Progress Show. The purpose of these demonstrations was to show prospective landowners, prospective tenants, and professional appraisers a way to estimate income potential of an ownership parcel. Estimated yield and production cost by soil type Purdue agronomists and NRCS staff have estimated crop yields for each soil type in Indiana. (These yield estimates may need to be updated, and possible differences considered for the same soil type in different counties.) Purdue staff annually estimate crop production costs for low, average, and high yielding soil types. The process could be computerized and budgets could be prepared for all Indiana soils. Agricultural Land Base Rate - Reference Material - Page 011 ---PAGE BREAK--- Reported average yield by county The Indiana Agricultural Statistics Service reports average yield for each county in May each year for the preceding year's crops. An expected trend yield could be calculated for each soil in each county. Each year, these trend yields could be adjusted by the same percentage change as the difference between the county expected and reported average yields. Reported average Indiana November corn and soybean prices The Indiana Agricultural Statistics Service reports average Indiana crop prices for each month. Prices for November1/ are used in calculating per acre corn and soybean income. USDA com and soybean loan price USDA has determined corn and soybean loan prices for each Indiana county. These prices reflect crop price differences because of the location of the county. Therefore, the November state average prices for com and soybeans could be adjusted by the price location differences in loan prices to obtain an estimate of November prices by county. St Paul Farm Credit Bank interest rate For each year, the Internal Revenue Service issues a listing of the average annual effective interest rates charged on new loans under the Farm Credit Bank system. These rates are used in computing the special use value of real property used as a farm for which an election is made under section 2032A of the Internal Revenue Code. Indiana is in the St Paul district. For 1999, the reported interest rate is .0821. Weighted annual incomes and estimated land values As shown in Table 1, the 4-year average annual income is $80 and the estimated land value is $971. As shown in Table 2, for high yield land the average income is $124 and the land value is $1510. Annual incomes could be weighted with income from the most recent year being weighted the most. One option would be a percentage weight of 40 - 30 - 20 - 10 with the most recent year at 40% and the most distant year at 10%. Using this criteria, the weighted average annual income is $71.10 and the estimated average land value is $866. A weighting of 33 - 27 - 22 - 18 with the most recent year at 33% and the most distant year at 18% produces a weighted average annual income of $75.27 and an estimated average land value of $917. For high yield soil, the 40 - 30 - 20 - 10 optimal weights give an average income of $113 and a land value of $1379. The 33 - 27 - 22 - 18 weights give an average income of $118 and a land value of $1442. This approach - discounting the potential agricultural income - to valuing farm land is reasonable so long as the income estimates and the discount rates are defensible. There is also logic to using a four year average with the most recent years being weighted higher, especially if the state were to go to annual assessments. So long as they stay with a four year assessment cycle it becomes more of a judgement call. 1/ Prices tend to increase throughout the year. November, a month close to the end of the harvest season was chosen. If prices later than November are chosen then a storage cost would also need to be included. Agricultural Land Base Rate - Reference Material - Page 012 ---PAGE BREAK--- Income and land value estimates As illustrated in Tables 1 and 2, income from a com/soybean rotation on average and high yield soils is calculated for 1996-99. State average yields for each soil are multiplied by November prices to obtain per acre sales. Variable costs as found in the Purdue Crop Guide for average and high yield soils are subtracted to obtain per acre contribution margin from crops. Corn contribution margin plus soybean contribution margin plus government payment is added and the sum is divided by 2 to get per acre total contribution margin. Overhead costs from the Purdue Crop Guide for a com/soybean farm are subtracted from the contribution margin to get per acre income. Incomes for the four years are averaged. The average income is divided by the St Paul interest rate to get estimated land value. Agricultural Land Base Rate - Reference Material - Page 013 ---PAGE BREAK--- Table 1. Indiana Land Value Calculation Based on an Income Approach, 1996-99 Average Yield Soil 1996 1997 1998 1999 Corn Beans Corn Beans Corn Beans Corn Beans Yield1/ 123 38 122 43.5 132 42 134.1 42.9 Price (November)1/ $2.69 $6.90 $2.60 $6.88 $2.06 $5.49 $2.04 $5.40 Sales $331 $262 $317 $299 $282 $231 $274 $232 Less variable costs2/ 134 94 137 96 148 85 145 86 Crops contribution margin $197 $168 $180 $203 $134 $146 $129 $146 Plus government payment3/ $23 $45 $53 $34 Total contribution margin $194 $214 $167 $154 Less overhead: Annual machinery2/ 48 50 49 49 Drying/handling 6 6 7 7 Family/hired labor2/ 37 37 37 37 Real estate tax3/ 10 10 10 10 Equals: Income $93 $111 $64 $51 4-year average income =$80 1999 St Paul interest rate4/ = .0821 Estimated land value = $971 1/ State average yield, state average November price as reported by Indiana Agricultural Statistics Service. 2/ Costs are taken from annual Purdue Crop Guide, ID-166. 3/ Government payments and real estate tax are estimated by the author. 4/ Average annual effective interest rate on new loans under the Farm Credit Bank System, St Paul district. Agricultural Land Base Rate - Reference Material - Page 014 ---PAGE BREAK--- Table 2. Indiana Land Value Calculation Based on an Income Approach, 1996-99 High Yield Soil 1996 1997 1998 1999 Corn Beans Corn Beans Corn Beans Corn Beans Yield1/ 151.3 46.8 49.9 53.6 169 51 165 52.8 Price (November)1/ $2.69 $6.90 $2.60 $6.88 $2.06 $5.49 $2.04 $5.40 Sales $407 $323 $390 $369 $348 $280 $337 $285 Less variable costs2/ 153 103 157 106 170 91 167 92 Crops contribution margin $254 $220 $233 $263 $178 $189 $170 $193 Plus government payment3/ $29 $56 $64 $42 Total contribution margin $252 $276 $216 $202 Less overhead: Annual machinery2/ 53 55 54 54 Drying/handling 7 7 8 8 Family/hired labor2/ 37 37 37 37 Real estate tax3/ 14 14 14 14 Equals: Income $141 $163 $103 $89 4-year average income= $124 1999 St Paul interest rate4/ = .0821 Estimated land value= $1510 1/ State average yield, state average November price as reported by Indiana Agricultural Statistics Service. 2/ Costs are taken from annual Purdue Crop Guide, ID-166. 3/ Government payments and real estate tax are estimated by the author. 4/ Average annual effective interest rate on new loans under the Farm Credit Bank System, St Paul district. Agricultural Land Base Rate - Reference Material - Page 015 ---PAGE BREAK--- January 1, 2026 Assignment of Capitalization Rate To Determine Final Base Rate Per IC 6-1.1-4-4.5 Department of Local Government Finance's Table 2-18 Calculation of Agricultural Land Base Rate RATE AVERAGE MARKET VALUE IN USE Year Cash Rent Owner-Operated Cap. Rate Cash Rent Owner-Operated PER ACRE 2020 192 141 4.50% 4,267 3,133 3,700 2021 206 343 4.21% 4,893 8,147 6,520 2022 230 319 5.83% 3,945 5,472 4,708 2023 233 260 7.88% 2,957 3,299 3,128 2024 230 48 7.79% 2,953 616 1,784 2025 229 29 7.26% 3,154 399 1,777 3,020 Determination of Final Capitalization Rate: Prior Year's Final Base Rate 2,120 IC 6-1.1-4-4.5 (See statute for exact language) Current Year's Preliminary Base Rate 3,020 If there is an increase of 10% or more, the rate will be Percent Difference 42.5% If there is a decrease of 10% or more, the rate will be If neither or applies, the rate will be Final Capitalization Rate To Use: 9% Department of Local Government Finance's Calculation of Final Agricultural Land Base Rate RATE AVERAGE MARKET VALUE IN USE Year Cash Rent Owner-Operated Cap. Rate Cash Rent Owner-Operated PER ACRE 2020 192 141 9.00% 2,133 1,567 1,850 2021 206 343 9.00% 2,289 3,811 3,050 2022 230 319 9.00% 2,556 3,544 3,050 2023 233 260 9.00% 2,589 2,889 2,739 2024 230 48 9.00% 2,556 533 1,544 2025 229 29 9.00% 2,544 322 1,433 2,120 NET INCOMES MARKET VALUE IN USE PER ACRE PER ACRE Preliminary Table 2-18 Base Rate Final Base Rate (Average - 5 Lowest Years) (Average - 5 Lowest Years) NET INCOMES MARKET VALUE IN USE PER ACRE PER ACRE Agricultural Land Base Rate - Reference Material - Page 016 ---PAGE BREAK--- Table 2-18 - Updated for January 1, 2026 Source: Real Property Assessment Guidelines Column A Column B Column C Column D Column E Column F RATE AVERAGE MARKET VALUE IN USE Year Cash Rent Owner-Operated Cap. Rate Cash Rent Owner-Operated PER ACRE 2020 192 P-18 141 P-38 4.50% P-27 4,267 3,133 3,700 2021 206 P-18 343 P-38 4.21% P-27 4,893 8,147 6,520 2022 230 P-18 319 P-38 5.83% P-27 3,945 5,472 4,708 2023 233 P-18 260 P-38 7.88% P-27 2,957 3,299 3,128 2024 230 P-18 48 P-38 7.79% P-27 2,953 616 1,784 2025 229 P-18 29 P-38 7.26% P-27 3,154 399 1,777 Base Rate 3,020 Formula: Gross Cash Gross Income Average of Column A Column B The average of Rent Less Less Expenses Qtly. Farm divided by divided by Columns D and E Property Taxes Loan Rates Column C Column C Source: Purdue Ag. Indiana Ag. Federal The base rate is Econ. Reports Statistics Reserve the average of the (PAER) Service and Bank of 5 lowest averages Purdue Crop Chicago above rounded to Guide the nearest $10. [IC 6-1.1-4-4.5 As illustrated in the following equation, the market value in use of agricultural land is calculated by dividing the net income of each acre by the appropriate capitalization rate. Market Value In Use = Net Income Divided By The Capitalization Rate (Average - 5 Lowest Years) NET INCOMES MARKET VALUE IN USE PER ACRE PER ACRE Agricultural Land Base Rate - Reference Material - Page 017 ---PAGE BREAK--- Table 2-18 - Updated for January 1, 2026 Calculation for Net Income-Cash Rent Column Gross Less Net Cash Cash Property Cash Cap. Rent Year Rent Taxes Rent Rate Value 2020 217 P-20 -25 P-26 192 4.50% P-27 4,267 2021 227 P-20 -21 P-26 206 4.21% P-27 4,893 2022 252 P-22 -22 P-26 230 5.83% P-27 3,945 2023 257 P-22 -24 P-26 233 7.88% P-27 2,957 2024 260 P-24 -30 P-26 230 7.79% P-27 2,953 2025 264 P-24 -35 P-26 229 7.26% P-27 3,154 Agricultural Land Base Rate - Reference Material - Page 018 ---PAGE BREAK--- Title: Indiana Farmland Prices Hit New Record High in 2021 Author: Todd H. Kuethe Issue ID: PAER_2021-9 Date: July 27, 2021 Tags: Farmland values, cash rents Summary: Indiana farmland prices hit a new record high in 2021. Farmland price growth is driven by a combination of high expected incomes, low interest rates, and limited supply to satisfy demand. It is safe to say that the last year was unlike any other in recent memory. The COVID-19 pandemic caused significant disruption to our lives and the global economy. Surprisingly, many of the current economic forces put upward pressure on farmland prices. As one respondent noted, “short supply of farms for sale, investors and institutional buyers, farmers flush with money and equity, continued historic low interest rates and fear of increasing rates, an influx of government assistance, higher than anticipated commodity prices, fear of tax policy changes, and a willingness to accept lower required returns on investments… all equal a new historic land value.” This unique combination of economic forces led to new record high farmland prices in 2021, according to the recent Purdue Land Values and Cash Rent Survey. Statewide, top quality farmland averaged $9,785 per acre, up 14.1% from June 2020 (Table The high growth rate for top quality farmland was closely followed by the growth in average and poor quality farmland prices, which increased by 12.5% (to $8,144) and 12.1% (to $6,441), respectively. Across all land quality classes, 2021 per acre farmland prices exceeded the previous record set in 2014. Many areas of the state experienced particularly high farmland price appreciation (Figure The highest growth rates were observed in the Southwest region, ranging from 20% for average and poor quality land to nearly 28% for top quality farmland. High appreciation rates were also observed across all land quality classes in the Central and West Central regions. The West Central and Central regions also exhibited the highest value or cost per unit of productivity (per bushel of corn). In 2021, the highest per acre price for high quality farmland was in the Southwest portion of the state, and the highest per acre prices for average and poor quality farmland were in the West Central region. Agricultural Land Base Rate - Reference Material - Page 019 ---PAGE BREAK--- Purdue Agricultural Economics Report, 7 Cash Rents Statewide cash rental rates increased across all land quality classes in 2021. Statewide average rental rates increased by 3.9% for top quality land, from $259 to $269 per acre. The cash rental rates for average and poor quality lands both increased by 4.6% to $227 and $183, respectively. At the regional level, the largest rental rate increases for top and average quality land were both in the Southeast region (11.5% and and the largest rental rate increases for poor quality land were in the North region Across all three land quality classes, the highest per acre cash rent was observed in the West Central region. Rent as a share of June land value decreased in 2021, suggesting that cash rental rates appreciated slower than farmland prices. Some portion of the difference in appreciation rates may reflect changes in expectations between fall 2020, when 2021 rents were negotiated, and the 2021 growing season. However, at least one respondent suggests that “fear of input prices for 2022 is going to restrict cash rents going up sharply” in the coming year. Table 4: Average estimated Indiana cash rent per acre, (tillable, bare land) 2020 and 2021, Purdue Land Value Survey, June 2021 Rent as % of Rent/Acre Change Rent/bu. of corn June Land Value Land Corn 2020 2021 20-21 2020 2021 2020 2021 Area Class bu/A % $/bu. $/bu. % % North Top 214 272 273 0.4% 1.31 1.28 3.2% 3.0% Average 178 219 222 1.4% 1.22 1.25 3.3% 3.1% Poor 146 165 174 5.5% 1.10 1.19 3.4% 3.1% Northeast Top 205 242 242 0.0% 1.20 1.18 2.8% 2.6% Average 178 205 211 2.9% 1.16 1.19 2.7% 2.6% Poor 152 174 181 4.0% 1.14 1.19 2.7% 2.7% W. Central Top 217 293 302 3.1% 1.35 1.39 3.1% 2.8% Average 193 252 262 4.0% 1.33 1.36 3.1% 2.8% Poor 165 212 222 4.7% 1.30 1.35 3.2% 2.8% Central Top 212 261 272 4.2% 1.24 1.28 3.0% 2.7% Average 186 222 235 5.9% 1.21 1.26 2.9% 2.6% Poor 160 185 192 3.8% 1.18 1.20 3.0% 2.6% Southwest Top 219 269 288 7.1% 1.27 1.32 2.9% 2.5% Average 180 216 225 4.2% 1.21 1.25 3.0% 2.6% Poor 145 161 164 1.9% 1.09 1.13 3.2% 2.7% Southeast Top 198 200 223 11.5% 1.06 1.13 3.3% 3.3% Average 167 171 182 6.4% 1.06 1.09 3.5% 3.6% Poor 133 131 133 1.5% 0.99 1.00 3.6% 3.6% Indiana Top 212 259 269 3.9% 1.27 1.27 3.0% 2.7% Average 182 217 227 4.6% 1.24 1.25 3.0% 2.8% Poor 153 175 183 4.6% 1.19 1.20 3.0% 2.8% Looking Ahead Statewide farmland prices established a new record high in 2021, expanding on the growth from 2019 to 2020. The growth in farmland prices is driven by complex combination of economic Agricultural Land Base Rate - Reference Material - Page 020 ---PAGE BREAK--- 1 Purdue Agricultural Economics Report AUGUST 2023 PURDUE AGRICULTURAL ECONOMICS REPORT Indiana Farmland Values & Cash Rents Issue your source for in-depth agricultural news straight from the experts Indiana Farmland Prices Continue to Rise in 2023 Todd H. Kuethe, Schrader Endowed Chair in Farmland Economics Indiana farmland prices once again hit a new record high in 2023, according to the recent Purdue Farmland Value and Cash Rent Survey. Statewide, the average price of top quality farmland is $13,739 per acre, up 7.3% from June 2022 (Table Average and poor quality farmland also hit new highs at $11,210 and $8,689 per acre, with an annual increase of 5.8% and 0.7%, respectively. While farmland prices reached a new peak in 2023, the appreciation rate from 2022 to 2023 was much lower than the record high price growth observed between 2021 and 2022. State-level averages, however, mask the variability in farmland price changes across Indiana (Figure In the Southeast region, for example, farmland prices grew by exceptionally high levels across all three quality grades (36.8%, 45.4%, and 55.8% for top, average, and poor quality lands), but, in the Southwest region, farmland prices fell across all three quality grades and The highest land values were once again found in the Central Contents: Indiana Farmland Prices Continue to Rise in Trends in Farmland Price to Rent Ratios in Cash Rental Rates: USDA-NASS vs. Purdue Survey region, with an average per acre price of $14,852 for top, $12,576 for average, and $9,657 for poor quality land. Respondent expectations for the second half of 2023 also vary across regions and land qualities. Respondents expect modest increase in the Southwest region across all quality grades and for top and average quality land in the Southeast region. However, in the remaining classes in regions the respondents expect modest declines in values through December 2023. The changes in values for farmland transitioning out of agricultural production and those of farmland used for recreational purposes also diverged in 2023. Statewide, the per acre value of farmland transitioning out of agricultural production increased by 4.1% between June 2022 and June 2023 to $25,228. However, the value of recreational land declined by –10.4% to $8,170 per acre. Agricultural Land Base Rate - Reference Material - Page 021 ---PAGE BREAK--- Table 2: Projected five-year average corn and soybean prices, mortgage interest, and inflation Price Rate Year Corn Soybeans Interest Inflation 2019 4.15 9.01 5.5 2.4 2020 3.77 9.07 3.9 2.1 2021 4.66 11.15 4.9 3.4 2022 5.65 12.84 6.4 5.8 2023 5.55 12.81 6.8 4.5 Average 4.76 10.98 5.5 3.6 Table 3: Average estimated Indiana cash rent per acre, (tillable, bare land) 2022 and 2023, Purdue Land Value Survey, June 2023 Rent as % of Rent/Acre Change Rent/bu. of corn June Land Value Land Corn 2022 2023 22-23 2022 2023 2022 2023 Area Class Bu/A % $/bu $/bu % % North Top 219 280 289 3.13 1.24 1.32 2.2 2.2 Average 185 225 233 3.70 1.22 1.26 2.3 2.3 Poor 154 179 185 3.10 1.18 1.20 2.4 2.5 Northeast Top 220 293 291 -0.66 1.36 1.32 2.3 2.1 Average 191 239 239 -0.13 1.27 1.25 2.1 2.1 Poor 164 190 191 0.69 1.21 1.17 2.0 2.2 W. Central Top 227 329 327 -0.56 1.44 1.44 2.5 2.3 Average 198 289 278 -3.67 1.44 1.41 2.6 2.4 Poor 171 247 243 -1.74 1.45 1.42 2.7 2.6 Central Top 219 295 310 5.01 1.39 1.42 2.2 2.1 Average 195 249 275 10.35 1.34 1.41 2.2 2.2 Poor 170 211 238 12.95 1.30 1.40 2.3 2.5 Southwest Top 227 309 296 -4.07 1.31 1.31 2.2 2.3 Average 193 244 239 -2.22 1.23 1.24 2.4 2.5 Poor 160 194 173 -10.71 1.19 1.08 2.4 2.4 Southeast Top 207 225 299 32.78 1.10 1.44 2.5 2.4 Average 184 179 246 37.22 1.00 1.34 2.6 2.4 Poor 159 141 208 47.16 1.03 1.31 2.7 2.6 Indiana Top 221 300 306 1.99 1.36 1.38 2.3 2.2 Average 193 252 257 2.09 1.32 1.33 2.4 2.3 Poor 165 207 212 2.50 1.29 1.28 2.4 2.4 Cash Rent Statewide, cash rents increased by a modest amount between 2022 and 2023. However, in nominal terms, statewide cash rents for all three quality grades are at an all time high. Per acre cash rental rates for top, average, and poor quality land exceed the previous highs set in 2013, 2014, and 2021, Agricultural Land Base Rate - Reference Material - Page 022 ---PAGE BREAK--- AUGUST 2025 Indiana farmland prices have continued the trend of record highs in 2025, according to the latest Purdue Farmland Value and Cash Rents Survey results. The survey is conducted out of the Purdue University Department of Agricultural Economics and produced through the cooperation of numerous professionals knowledgeable about Indiana’s farmland market. These professionals provide an estimate of the market value for bare poor-, average- and top-quality farmland in December 2024, June 2025 and a forecast for December 2025. The average price of top-quality farmland reached $14,826 per acre, a 3.0% increase from June 2024. Average- and poor-quality farmland also saw gains, with prices increasing 5.4% and 7.6% to $12,254 and $9,761 per acre, respectively. Farmland prices increased modestly in 2025 at the state-level and across the northern two thirds of the state. However, farmland prices declined by varying degrees in the southern third of the state. Both the southwest and southeast regions experienced declines between 4.6% and 11.3%, depending on quality grade. Respondents expect a modest increase in farmland prices through the rest of 2025 for most of the state, though prices are anticipated to continue to decline in the southwest and southeast regions. Additionally, land transitioning out of agricultural production declined in value by Statewide cash rents saw minimal changes, with some variation across regions, reflecting broader trends in land values. The Department of Agricultural Economics conducts the Purdue Farmland Value and Cash Rents Survey each June and it is published in the quarterly publication Purdue Agricultural Economics Report. your source for in-depth agricultural news straight from the experts Farmland Values Survey 2025 Welcome from the Editor Todd Kuethe, Schrader Chair in Farmland Economics & Professor of Agricultural Economics 1 Contents: Welcome from the Farmland Prices Increase Despite Downward Pressure. Are Farmland Price Expectations “Wrong”? It Depends How You Is Farmland a Good Investment? Comparing Risk & Returns to Other Asset Trends in Farmland Price to Rent Ratios in Agricultural Land Base Rate - Reference Material - Page 023 ---PAGE BREAK--- 6 Purdue Agricultural Economics Report, August 2025 Rent as % of Rent/Acre Change Rent/bu. of corn June Land Value Land Corn 2024 2025 24-25 2024 2025 2024 2025 Area Class Bu/A % $/bu $/bu % % North Top 230 297 313 5.42 1.29 1.36 2.1 2.0 Average 198 239 247 3.05 1.21 1.24 2.1 2.0 Poor 168 180 179 –0.31 1.07 1.07 2.1 1.9 Northeast Top 227 289 306 5.56 1.27 1.35 2.0 1.9 Average 199 239 253 5.84 1.20 1.27 2.0 1.8 Poor 171 188 201 6.47 1.10 1.17 2.0 1.8 W. Central Top 240 339 358 5.64 1.41 1.49 2.4 2.5 Average 210 284 299 5.04 1.35 1.42 2.5 2.5 Poor 180 231 239 3.59 1.28 1.33 2.4 2.4 Central Top 227 306 328 7.40 1.35 1.45 2.1 2.1 Average 199 263 282 7.17 1.33 1.42 2.1 2.1 Poor 170 213 223 4.69 1.25 1.31 2.2 2.1 Southwest Top 229 323 286 –11.36 1.41 1.25 2.0 2.0 Average 189 251 229 –8.43 1.33 1.22 2.2 2.1 Poor 155 182 173 –4.59 1.17 1.12 2.4 2.3 Southeast Top 214 263 248 –6.01 1.23 1.16 2.4 2.4 Average 183 218 197 –9.92 1.19 1.07 2.4 2.4 Poor 156 177 167 –5.66 1.13 1.07 2.7 2.7 Indiana Top 230 313 318 1.74 1.36 1.38 2.2 2.1 Average 199 260 264 1.61 1.30 1.32 2.2 2.2 Poor 170 204 207 1.53 1.20 1.22 2.3 2.1 Table 3: Average estimated Indiana cash rent per acre (tillable, bare land), 2024 and 2025, Purdue Land Value Survey, Juney 2025 Purdue Farmland Value and Cash Rent Survey The Purdue Farmland Value and Cash Rent Survey is conducted each June. The survey is possible through the cooperation and contribution of numerous professionals knowledgable of Indiana’s farmland market. These professionals include farm managers, rural appraisers, land brokers, agricultural loan officers, farmers, and Farm Service Agency (FSA) county office directors. These professionals were selected because their daily work requires they stay well informed about farmland values and cash rents. These professionals provide an estimate of the market value for bare poor, average, and top quality farmland in December 2024, June 2025, and a forecast for December 2025. To assess productivity of the farmland, respondents provide an estimate of long-term corn yield for top, average, and poor productivity farmland. Respondents also provide a market value estimate for land transitioning out of agriculture and for recreational land. The data reported here provide general guidelines regarding farmland values and cash rent. To obtain a more precise value of an individual tract, contact a professional appraiser or farm manager that has a good understanding of the local market. Prior reports are located at: Agricultural Land Base Rate - Reference Material - Page 024 ---PAGE BREAK--- Average Net Tax Bill/Acre of Farmland 0.00 5.00 10.00 15.00 20.00 25.00 30.00 35.00 40.00 Pay 2020 Pay 2021 Pay 2022 Pay 2023 Pay 2024 Pay 2025 Agricultural Land Base Rate - Reference Material - Page 025 ---PAGE BREAK--- January 1, 2026 Average Net Tax Bill/Acre of Farmland Pay 2020 25.40 Pay 2021 21.33 Pay 2022 21.55 Pay 2023 24.00 Pay 2024 30.25 Pay 2025 35.44 Agricultural Land Base Rate - Reference Material - Page 026 ---PAGE BREAK--- January 1, 2026 Real Operating Estate Loans Loans Avg. Source: 2020 Jan-Mar 4.51 4.83 P-29 Apr-June 4.40 4.77 P-29 July-Sept 4.24 4.65 P-29 Oct-Dec 4.10 4.49 P-29 Average 4.31 4.69 4.50 2021 Jan-Mar 4.08 4.42 P-29 Apr-June 4.02 4.40 P-29 July-Sept 4.01 4.34 P-29 Oct-Dec 4.03 4.34 P-29 Average 4.04 4.38 4.21 2022 Jan-Mar 4.44 4.64 P-31 Apr-June 5.17 5.42 P-31 July-Sept 6.13 6.52 P-31 Oct-Dec 6.80 7.50 P-31 Average 5.64 6.02 5.83 2023 Jan-Mar 7.14 7.97 P-31 Apr-June 7.33 8.24 P-31 July-Sept 7.70 8.50 P-31 Oct-Dec 7.60 8.51 P-31 Average 7.44 8.31 7.88 2024 Jan-Mar 7.57 8.44 P-33 Apr-June 7.55 8.47 P-33 July-Sept 7.19 8.12 P-33 Oct-Dec 7.19 7.78 P-33 Average 7.38 8.20 7.79 2025 Jan-Mar 7.09 7.73 P-35 Apr-June 7.02 7.63 P-35 July-Sept 6.82 7.47 P-37 Oct-Dec 6.82 7.47 P-37 Average 6.94 7.58 7.26 Source: Federal Reserve Bank of Chicago. AgLetter (a quarterly newsletter) - The information for the 4th quarter of 2025 was not available at the time of this publication so the 3rd quarter of 2025 was used. Agricultural Land Base Rate - Reference Material - Page 027 ---PAGE BREAK--- The Agricultural Newsletter from the Federal Reserve Bank of Chicago Number 1995 February 2022 FARMLAND VALUES AND CREDIT CONDITIONS Summary There was an annual increase of 22 percent in the Seventh Federal Reserve District’s agricultural land values in 2021— the largest such rise over the past decade. In addition, values for “good” farmland in the District gained 7 percent in the fourth quarter of 2021 from the third quarter, according to 147 agricultural bankers who responded to the January survey. Fifty-six percent of the survey respondents expected farmland values to go up during the January through March period of 2022, 1 percent expected them to go down, and 43 percent expected them to remain the same. District agricultural credit conditions during the fourth quarter of 2021 continued to show signs of improvement. Only 0.8 percent of agricultural borrowers were not likely to qualify for operating credit at the survey respondents’ banks in 2022 after qualifying in the previous year (matching the survey’s record low, reached in 2012). In the final quarter of 2021, repayment rates for non-real-estate farm loans were again higher than a year ago, plus loan renewals and ex­ tensions were lower than a year ago. Both of these indicators of farm credit conditions were better than a year earlier in each of the five most recent quarters. That said, non-real-estate farm loan demand relative to a year ago was lower for a sixth consecutive quarter. For ten quarters in a row, there have been more funds available for lending than in the same quarter the prior year at survey respondents’ banks. In line with these trends, the average loan-to-deposit ratio for the District retreated to 67.2 percent in the fourth quarter of 2021—its lowest reading since the first quarter of 2014. At the end of 2021, the District’s average nominal interest rates on farm operating, feeder cattle, and farm real estate loans were still very close to their respective all-time lows; yet real interest rates on them had dropped noticeably into negative territory. Farmland values On the whole, the District experienced a very steep annual increase of 22 percent in its farmland values in 2021 (see table and map below). In nominal terms, 2011’s annual increase was the last gain as large as 2021’s. In the fourth quarter of 2021, all District states saw double-digit year- over-year increases in their agricultural land values. The District’s farmland values were up 7 percent in the fourth quarter of 2021 from the third quarter. Adjusted for inflation by the Personal Consumption Expenditures Price Index, District farmland values still had an annual increase of 17 percent in 2021, the largest real increase since 2011 (see chart 1 on next page). More than making up for their real declines from 2014 through 2019, District farmland values reached a new peak in 2021. Percent change in dollar value of “good” farmland Top: Bottom: October 1, 2021 to January 1, 2022 January 1, 2021 to January 1, 2022 October 1, 2021 to January 1, 2022 January 1, 2021 to January 1, 2022 Illinois +8 +18 Indiana +6 +22 Iowa +10 +30 Michigan +5 +19 Wisconsin +4 +12 Seventh District +7 +22 *Insufficient response. IN VI I MI +5 +11 +5 +22 +5 +34 +14 +33 V II VII VIII IV * +10 +21 III +10 +24 +6 +14 +5 +19 +6 +22 Agricultural Land Base Rate - Reference Material - Page 028 ---PAGE BREAK--- non-real-estate farm loan renewals and extensions in the final quarter of 2021 were lower than in the final quarter of 2020, as just 3 percent of survey respondents reported more of them and 30 percent reported fewer. Even though loan problems receded, 90 percent of survey respondents’ banks kept their credit standards for farm loans essentially the same in the fourth quarter of 2021 as a year ago—with roughly an even split of the rest between tightening and easing credit standards. Likewise, 99 percent of responding bankers noted their banks did not change the amounts of collateral required for customers to qualify for non-real-estate farm loans during the final quarter of 2021 relative to a year ago, though 1 percent noted their banks required smaller amounts. During the October through December period of 2021, demand for non-real-estate farm borrowing was once again lower relative to the same period of a year ago: With 22 per­ cent of survey respondents reporting an increase in the demand for non-real-estate farm loans from a year earlier and 46 percent reporting a decrease, the index of loan demand was 76 in the fourth quarter of 2021. At 152 in the final quarter of 2021, the index of funds availability indicated once more a higher level of funds available for lending than a year ago; funds availability was higher than a year earlier at 54 percent of the survey respondents’ banks and lower at 2 percent. The District’s average loan-to-deposit ratio dipped to 67.2 percent in the fourth quarter of 2021; this ratio was 14 percentage points below the average level desired by the responding bankers. An Indiana banker remarked: “Lack of operating loan demand is a bigger concern to our bank than credit quality at this point.” Looking forward According to survey respondents at the beginning of 2022, only 0.8 percent of their farm customers with operating credit in the year just past were not likely to qualify for new operating credit in the year ahead. Farm real estate loan volumes were projected to be larger in the first three months of 2022 compared with the same three months of a year ago, while non-real-estate loan volumes were pro­ jected to be smaller (except for farm machinery loan volumes). At the start of 2022, survey respondents once again fore­ casted capital expenditures by farmers would be higher in the year ahead than in the year just ended (similar to their prediction in early 2021). For the fifth quarter in a row, a majority of responding bankers (56 percent) predicted farmland values to go up in the next quarter (in this case, the first quarter of 2022). Just 1 percent of the survey respondents predicted farm­ land values to go down; 43 percent of the respondents predicted them to be stable. One Illinois banker cautioned: “Farmers were able to realize nice profits in 2021; 2022 could be much more difficult to do so with the rise in the costs of all inputs.” David B. Oppedahl, senior business economist AgLetter (ISSN 1080-8639) is published quarterly by the Economic Research Department of the Federal Reserve Bank of Chicago. The information used in the preparation of this publication is obtained from sources considered reliable, but its use does not constitute an endorsement of its accuracy or intent by the Federal Reserve Bank of Chicago or the Federal Reserve System. Opinions expressed in this article are those of the author(s) and do not necessarily reflect the views of the Federal Reserve Bank of Chicago or the Federal Reserve System. © 2022 Federal Reserve Bank of Chicago AgLetter articles may be reproduced in whole or in part, provided the articles are not reproduced or distributed for commercial gain and provided the source is appropriately credited. Prior written permission must be obtained for any other reproduction, distribution, republication, or creation of derivative works of AgLetter articles. To request permission, please contact Han Y. Choi, editor, at [PHONE REDACTED] or email [EMAIL REDACTED]. AgLetter and other Bank publications are available at Credit conditions at Seventh District agricultural banks Interest rates on farm loans Loan demand Funds availability Loan repayment rates Average loan-to- deposit ratio Operating loansa Feeder cattlea Real estatea (index)b (index)b (index)b (percent) (percent) (percent) (percent) 020 Jan–Mar 117 107 59 78.9 4.83 5.01 4.51 Apr–June 103 119 64 77.6 4.77 4.94 4.40 July–Sept 85 131 93 75.0 4.65 4.79 4.24 Oct–Dec 91 148 133 73.6 4.49 4.66 4.10 021 Jan–Mar 79 162 146 69.7 4.42 4.58 4.08 Apr–June 63 160 146 67.5 4.40 4.55 4.02 July–Sept 78 161 143 68.8 4.34 4.51 4.01 Oct–Dec 76 152 153 67.2 4.34 4.53 4.03 At end of period. Bankers responded to each item by indicating whether conditions in the current quarter were higher or lower than (or the same as) in the year-earlier quarter. The 2 2 a b index numbers are computed by subtracting the percentage of bankers who responded “lower” from the percentage who responded “higher” and adding 100. Note: Historical data on Seventh District agricultural credit conditions are available online, Agricultural Land Base Rate - Reference Material - Page 029 ---PAGE BREAK--- The Agricultural Newsletter from the Federal Reserve Bank of Chicago Number 2003, February 2024 FARMLAND VALUES AND CREDIT CONDITIONS Summary An annual increase of 6 percent in the Seventh Federal Reserve District’s agricultural land values in 2023 helped them reach a new peak, though the yearly gain shrank to a single digit. Values for “good” farmland in the District moved up 2 percent in the fourth quarter of 2023 from the third quarter, according to 129 agricultural bankers who responded to the January survey. Only 6 percent of the survey respondents expected farmland values to rise during the January through March period of 2024, with 17 percent expecting them to fall and 77 percent expecting them to be stable. District agricultural credit conditions showed signs of deterioration during the fourth quarter of 2023. In the final quarter of 2023, repayment rates for non-real-estate farm loans were lower than a year ago, plus loan renewals and extensions were higher than a year earlier. Just over 1 percent of agricultural borrowers were not likely to qualify for operating credit at the survey respondents’ banks in 2024 after qualifying in the previous year. Non-real-estate farm loan demand relative to a year ago picked up for the first time in 14 quarters. For the third time in a row, there were fewer funds available for lending than in the same quarter of the prior year at survey respondents’ banks in the final quarter of 2023. The average loan-to-deposit ratio for the District was nearly unchanged at 74.0 percent in the fourth quarter of 2023. At the end of 2023, the District’s average nominal interest rates on farm operating, feeder cattle, and farm real estate loans were roughly the same as at the end of the third quarter of last year and still at or near their highest levels in over 16 years. Even so, average real rates rose for all three kinds of loans tracked by the survey. Farmland values In 2023, the District saw an annual increase of 6 percent in its farmland values (see table and map below). With Illinois and Indiana having single-digit increases, annual agricultural land value changes for those two states were lower in 2023 than in 2022. Iowa had a small, single-digit annual decrease in farmland values for its first decline in the last five years. In contrast, Wisconsin had a double-digit annual increase in agricultural land values for 2023. Wisconsin bankers noted “nonfarm pressures still exist, notably solar” and “there is not a lot of farmland available for sale.” District farmland values increased 2 percent from the third quarter of 2023 to the fourth quarter. Adjusted for inflation by the Personal Consumption Expenditures Price Index (PCEPI), District farmland values had an annual increase of 2.2 percent in 2023, the smallest real increase seen after 2019 (see chart 1 on next page). District farmland values rose to a new peak in 2023, 15 percent above their 2013 peak in real terms and up 44 percent from their 2013 peak in nominal terms (see chart 2 on next page). Percent change in dollar value of “good” farmland Top: Bottom: October 1, 2023 to January 1, 2024 January 1, 2023 to January 1, 2024 October 1, 2023 to January 1, 2024 January 1, 2023 to January 1, 2024 Illinois +1 +4 Indiana +2 +7 Iowa –2 –1 Michigan * * Wisconsin +4 +14 Seventh District +2 +6 *Insufficient response. I –2 –2 II +2 –1 III +1 0 IV –6 +2 V +5 +17 VI +3 –5 VII –1 +10 VIII * MI * IN +2 +7 Agricultural Land Base Rate - Reference Material - Page 030 ---PAGE BREAK--- Credit conditions at Seventh District agricultural banks Interest rates on farm loans Loan demand Funds availability Loan repayment rates Average loan-to- deposit ratio Operating loansa Feeder cattlea Real estatea (index)b (index)b (index)b (percent) (percent) (percent) (percent) 2022 Jan–Mar 83 148 159 65.0 4.64 4.74 4.44 Apr–June 82 129 133 67.0 5.42 5.53 5.17 July–Sept 91 96 121 68.2 6.52 6.58 6.13 Oct–Dec 82 102 131 70.6 7.50 7.54 6.80 2023 Jan–Mar 78 102 123 70.3 7.97 7.93 7.14 Apr–June 77 83 105 72.8 8.24 8.19 7.33 July–Sept 81 72 100 74.3 8.50 8.47 7.70 Oct–Dec 106 69 92 74.0 8.51 8.49 7.60 aAt end of period. bBankers responded to each item by indicating whether conditions in the current quarter were higher or lower than (or the same as) in the year-earlier quarter. The index numbers are computed by subtracting the percentage of bankers who responded “lower” from the percentage who responded “higher” and adding 100. Note: Historical data on Seventh District agricultural credit conditions are available online. from a year earlier. With 7 percent of survey respondents reporting higher rates of loan repayment than a year ago and 15 percent reporting lower rates for the fourth quarter of 2023, the index of non-real-estate farm loan repayment rates was 92. Furthermore, non-real-estate farm loan renewals and extensions in the final quarter of 2023 were higher than in the final quarter of 2022, as 13 percent of survey respondents reported more of them and 2 percent reported fewer. Up from the previous year’s reading, 25 percent of survey respondents’ banks tightened their credit standards for farm loans in the fourth quarter of 2023 compared with a year earlier, while 75 percent of the respondents’ banks kept their credit standards essentially unchanged. Also, 92 percent of responding bankers noted their banks did not change the amounts of collateral required for customers to qualify for non-real-estate farm loans during the final quarter of 2023 relative to a year ago, while 8 percent noted their banks required larger amounts. Agricultural interest rates in nominal terms did not change much during the fourth quarter of 2023. As of January 1, 2024, the District’s average nominal interest rates were 8.51 percent on new operating loans, 8.49 percent on feeder cattle loans, and 7.60 percent on farm real estate loans. In real terms (after being adjusted for inflation with the PCEPI), the average interest rates for all three types of agricultural loans leaped higher in the fourth quarter of 2023. Average real interest rates on new operating and feeder cattle loans were last higher at the end of the third quarter of 2009, and the average real interest rate on new farm mortgages was last higher at the end of the fourth quarter of 2009. An Iowa respondent observed: “We have seen a decrease in working capital as a result of lower grain prices and higher interest rates. Higher interest rates have also reduced capital expenditures among our ag customers.” Looking forward Another Iowa banker warned of “tough times ahead.” In line with this thinking, survey respondents at the start of 2024 predicted capital expenditures by farmers would be lower in the year ahead than in the year just ended for land purchases or improvements, buildings and facilities, machinery and equipment, and trucks and autos. According to survey respondents at the beginning of 2024, 1.3 percent of their farm customers with operating credit in the year just past were not likely to qualify for new operating credit in the year ahead above the survey’s level at the start of 2023). Farm real estate loan volumes were forecasted to be smaller in the first three months of 2024 compared with the same three months of 2023. However, non-real-estate loan volumes (specifically for operating loans and loans guaranteed through the USDA’s Farm Service Agency) were forecasted to be larger in the first three months of 2024 compared with the same three months of a year earlier. An Illinois banker commented that “the need for operating credit will increase with tighter working capital positions from a year ago.” There were fewer responding bankers (6 percent) who projected agricultural land values to go up in the next quarter (in this case, the first quarter of 2024) than those who predicted them to go down (17 percent); 77 percent of the respondents projected them to be unchanged. Stable farmland values for the first quarter of 2024 were the consensus of survey participants, with 2024 looking to be a more challenging year for agriculture. David B. Oppedahl, policy advisor, and Elizabeth Kepner, senior research analyst Agricultural Land Base Rate - Reference Material - Page 031 ---PAGE BREAK--- FARMLAND VALUES AND CREDIT CONDITIONS Summary An annual decrease of 1 percent in the Seventh Federal Reserve District’s agricultural land values in 2024 ended a four-year run of substantial annual gains. Even so, values for “good” farmland in the District moved up 1 percent in the fourth quarter of 2024 from the third quarter, according to the respondents from 133 agricultural banks who completed the January 1 survey. Only 4 percent of the survey respondents expected farmland values to rise during the January through March period of 2025, while 26 percent expected them to fall (the majority expected them to be stable). District agricultural credit conditions continued to exhibit signs of deterioration during the fourth quarter of 2024. In the final quarter of 2024, repayment rates for non-real-estate farm loans were sharply lower than a year ago, plus loan renewals and extensions were noticeably higher than a year earlier. Nearly 2 percent of agricultural borrowers were not likely to qualify for operating credit at the survey respondents’ banks in 2025 after qualifying in the previous year. Non-real-estate farm loan demand relative to a year ago was up for the fifth quarter in a row. For the seventh time in a row, there were fewer funds available for lending than in the same quarter of the prior year at survey respondents’ banks. The average loan-to-deposit ratio for the District moved up to 76.7 percent in the fourth quarter of 2024. At the end of 2024, the District’s average nominal interest rates on farm operating and feeder cattle loans were somewhat lower than at the end of the third quarter of last year, while its average nominal interest rate on farm real estate loans was unchanged. Average real interest rates for all three kinds of loans tracked by the survey were at their lowest levels since the third quarter of 2023. Farmland values In 2024, the District saw an annual decrease of 1 percent in its agricultural land values (see table and map below). For the first time in five and six years, Illinois and Indiana, respectively, had annual decreases in their farmland values. In addition, Iowa had a larger single-digit annual decrease in its farmland values than in 2023. In contrast, Wisconsin had a single-digit annual increase in agricultural land values for 2024. A Wisconsin banker noted there was “still very little land available for sale.” District farmland values increased 1 percent from the third quarter of 2024 to the fourth quarter. Adjusted for inflation by the Personal Consumption Expenditures Price Index (PCEPI), District farmland values had an annual decrease of 3.4 percent in 2024, the first real decrease in five years and the largest real decrease since 2014 (see chart 1 on next page). District farmland values edged down from their 2023 peak, but were still 11 percent above October 1, 2024 to January 1, 2025 January 1, 2024 to January 1, 2025 Illinois +1 –3 Indiana +1 –3 Iowa +1 –2 Michigan * * Wisconsin +1 +8 Seventh District +1 –1 Top: Bottom: Percent change in dollar value of “good” farmland *Insufficient response. October 1, 2024 to January 1, 2025 January 1, 2024 to January 1, 2025 IN VI I MI –2 +10 –1 –1 +2 –4 –2 0 V II VII VIII IV * –2 –6 III +6 –2 +6 +3 * +1 –3 The Agricultural Newsletter from the Federal Reserve Bank of Chicago Number 2007, February 2025 Agricultural Land Base Rate - Reference Material - Page 032 ---PAGE BREAK--- Credit conditions at Seventh District agricultural banks to a year ago were down for the fifth consecutive quarter. The index of non-real-estate farm loan repayments was 64, with 36 percent of survey respondents reporting lower rates for the fourth quarter of 2024 than a year earlier and zero respondents reporting higher rates. Non-real-estate farm loan renewals and extensions in the final quarter of 2024 were higher than in the final quarter of 2023, as 31 percent of survey respondents reported more of them and 1 percent reported fewer. Up from the previous year’s reading, 40 percent of survey respondents’ banks tightened their credit standards for farm loans in the fourth quarter of 2024 compared with a year earlier, while 60 percent of the respondents’ banks kept their credit standards essentially unchanged. However, 81 percent of responding bankers noted their banks did not raise the amounts of collateral required for customers to qualify for non-real-estate farm loans during the final quarter of 2024 relative to a year ago, while 19 percent noted their banks required larger amounts. Agricultural interest rates in nominal terms (except for farm real estate loans) fell from the third quarter of 2024 to the fourth quarter. As of January 1, 2025, the District’s average nominal interest rates for new loans were 7.78 percent on operating loans, 7.88 percent on feeder cattle loans, and 7.19 percent on farm real estate loans; in real terms (after being adjusted for inflation with the PCEPI), the average interest rates for all three types of agricultural loans were at their lowest levels since the third quarter of 2023. Looking forward According to survey respondents at the beginning of 2025, 1.7 percent of their farm customers with operating credit in the year just past were not likely to qualify for new operating credit in the year ahead (somewhat above the survey’s level at the start of 2024). Farm real estate loan volumes were forecasted to be smaller in the first three months of 2025 compared with the same three months of 2024. Nevertheless, non-real-estate loan volumes (specifically for operating loans, feeder cattle loans, and loans guaranteed through the USDA’s Farm Service Agency) were forecasted to be larger in the first three months of 2025 compared with the same three months of a year earlier. Over this time frame, lending for farm machinery and grain storage construction was expected to decline relative to a year ago. Plus, survey respondents at the start of 2025 predicted capital expenditures by farmers would once again be lower in the year ahead than in the year just ended for land purchases or improvements, buildings and facilities, machinery and equipment, and trucks and autos. There were fewer responding bankers (4 percent) who projected agricultural land values to go up in the next quarter (in this case, the first quarter of 2025) than those who predicted them to go down (26 percent). With that said, there seemed to be some transactions for farmland in places at much higher prices than for similar ground elsewhere; an Illinois respondent attributed this phenomenon to “strong competition among neighbors buying with cash on hand.” Thus, there will likely be marked variability in sales prices for specific parcels. But again, on average, District farmland values were expected to be relatively flat or moving downward in the first quarter of 2025, as they had been prior to the pandemic. David B. Oppedahl, policy advisor, and Elizabeth Kepner, business economist aAt end of period. bBankers responded to each item by indicating whether conditions in the current quarter were higher or lower than (or the same as) in the year-earlier quarter. The index numbers are computed by subtracting the percentage of bankers who responded “lower” from the percentage who responded “higher” and adding 100. Note: Historical data on Seventh District agricultural credit conditions are available online. Interest rates on farm loans Loan demand Funds availability Loan repayment rates Average loan-to- deposit ratio Operating loansa Feeder cattlea Real estatea (index)b (index)b (index)b (percent) (percent) (percent) (percent) 2023 Jan–Mar 78 102 123 70.3 7.97 7.93 7.14 Apr–June 77 83 105 72.8 8.24 8.19 7.33 July–Sept 81 72 100 74.3 8.50 8.47 7.70 Oct–Dec 106 69 92 74.0 8.51 8.49 7.60 2024 Jan–Mar 136 78 78 76.1 8.44 8.45 7.57 Apr–June 104 74 85 76.9 8.47 8.44 7.55 July–Sept 120 92 76 75.7 8.12 8.09 7.19 Oct–Dec 129 90 64 76.7 7.78 7.88 7.19 Agricultural Land Base Rate - Reference Material - Page 033 ---PAGE BREAK--- Midwest Farmland Values Continued to Grow in the Second Quarter Farmland values Farmland values for the Seventh Federal Reserve District rose 3% in the second quarter of 2025 from a year earlier, marking the largest year-over-year gain since the first quarter of 2024. Values for “good” agricultural land were 1% higher in the second quarter of 2025 relative to the first quarter, according to survey responses from 98 District agricultural bankers. Indiana, Iowa, and Wisconsin agricultural land values exhibited year-over- year increases of varying degrees; meanwhile, Illinois farmland values were unchanged on a year-over-year basis (see figure In real terms (after being adjusted for inflation with the Personal Consumption Expenditures Price Index, or PCEPI), there was a year-over-year increase of 1% in District agricultural land values. This was the first positive year-over-year change in real farmland values for the District since the first quarter of 2024. Indiana and Wisconsin bankers cited real estate development as contributing to higher farmland values. For Indiana, there was also mention of investment activity, including solar and wind projects, factoring into rising agricultural land values. Credit conditions Agricultural credit conditions for the District were weaker in the second quarter of 2025 than a year ago. The share of farm loans with “major” or “severe” repayment problems in the District’s agricultural loan portfolio (as measured in the second quarter of every year) was 2.9% in 2025, up from last year’s level of 2.2% and the highest reading since 2020 (see figure Furthermore, the share of farm loans with “no” repayment problems declined to 90.1% from 91.6% a year ago. Also, repayment rates for non-real-estate farm loans were lower in the second quarter of 2025 compared with a year ago, and renewals and extensions of such loans were higher (see figure 3 on next page). The breakdown of the index numbers follows: • The index of demand for non-real-estate farm loans was 121 for the second quarter of 2025; 40% of survey respondents observed higher loan demand compared with a year ago, while 19% observed lower demand. • The index of funds availability stood at 90 for the second quarter of 2025; 8% of survey respondents noted that their banks had more funds available to lend than a year ago, while 18% noted they had less. Midwest Agriculture and Trade Uncertainty On September 30, 2025, the Federal Reserve Bank of Chicago will hold a hybrid event to explore interrelationships between Midwest farming and agricultural trade. Registration for the annual Midwest Agriculture Conference is available online. 1. Percent change in dollar value of “good” farmland Top: April 1, 2025 to July 1, 2025 Bottom: July 1, 2024 to July 1, 2025 *Insufficient response. The Agricultural Newsletter from the Federal Reserve Bank of Chicago Number 2009, August 2025 Michigan * Wisconsin +7 +11 Iowa –1 +4 Illinois –1 0 Indiana +7 +3 Seventh District +1 +3 2. Percentage of Seventh District farm loan portfolio with “major” or “severe” repayment problems Source: Authors’ calculations based on data from Federal Reserve Bank of Chicago surveys of farmland values (for the second quarter of each year). Agricultural Land Base Rate - Reference Material - Page 034 ---PAGE BREAK--- • The index of loan repayment rates for non-real-estate agricultural loans in the second quarter of 2025 was 71; only 2% of responding bankers noted higher rates of loan repayment than a year ago, while 31% noted lower rates. • The index of loan renewals and extensions of non-real- estate farm loans was 135 in the second quarter of 2025; 35% of survey respondents reported more of them than a year earlier, while no respondents reported fewer. The District’s average loan-to-deposit ratio rose to 78.1% in the second quarter of 2025—the highest reading since the first quarter of 2020 and over 3 percentage points below the average level desired by the responding bankers. The amount of collateral required by banks across the District was higher than a year ago. Over the first half of 2025, District banks made more farm operating loans and fewer farm mortgages than normal, according to responding bankers. Over the same time period, bankers reported that Farm Credit System lenders, as well as merchants, dealers, and other input suppliers, lent more funds to the agricultural sector than normal, while life insurance companies lent less. Average nominal interest rates on farm operating, feeder cattle, and farm real estate loans were down a little during the second quarter of 2025 from the first quarter. As of July 1, 2025, the District’s average nominal interest rates on new operating loans feeder cattle loans and farm real estate loans (7.02%) were at their lowest levels since the fourth quarter of 2022. In real terms (after being adjusted for inflation with the PCEPI), the average interest rates on operating loans, loans for feeder cattle, and loans for farm real estate were up from the first quarter of 2025 (their first increases after three consecutive quarters of declines). Looking forward Looking ahead to the third quarter of 2025, only 4% of the responding bankers anticipated farmland values to rise, while 78% anticipated them to be stable and 17% anticipated them to fall (the shares do not add up to 100% because of rounding). A majority of survey respondents were of the view that District farmland was overvalued (not a single respondent was of the view that it was undervalued). Survey respondents expected higher volumes for non-real-estate agricultural loans (primarily for operating loans, feeder cattle loans, and loans guaranteed by the Farm Service Agency) in the third quarter of 2025 compared with year-earlier levels. Farm machinery, grain storage construction, and farm real estate loan volumes were expected to shrink below the levels seen in the third quarter of 2024. According to an Iowa respondent, “If the commodity market doesn't significantly improve, our farmers in this area are going to have a tough time making any profit for the second year in a row.” This view reflected the broad consensus of the responding agricultural bankers regarding the challenges facing corn and soybean operations, though livestock operations seemed to be in overall better shape. David B. Oppedahl, policy advisor, and Elizabeth Kepner, business economist 3. Credit conditions at Seventh District agricultural banks Latest period Prior period Year ago 2025:Q2 2025:Q1 2024:Q2 Indexesa Loan demand 121 143 104 Funds availability 90 94 74 Loan repayment rates 71 61 85 Loan renewals and extensions 135 133 123 Average loan-to-deposit ratiob 78.1 76.9 76.9 Interest rates on farm loansc Operating loans 7.63 7.73 8.47 Feeder cattle loans 7.69 7.76 8.44 Real estate loans 7.02 7.09 7.55 aBankers responded to each item by indicating whether conditions in the current quarter were higher or lower than (or the same as) in the year-earlier quarter. The index numbers are computed by subtracting the percentage of bankers who responded “lower” from the percentage who responded “higher” and adding 100. bDuring period (in percent). cAt end of period (in percent). Note: Historical data on Seventh District agricultural credit conditions are available online. AgLetter (ISSN 1080-8639) is published quarterly by the Economic Research Department of the Federal Reserve Bank of Chicago. The information used in the preparation of this publication is obtained from sources considered reliable, but its use does not constitute an endorsement of its accuracy or intent by the Federal Reserve Bank of Chicago or the Federal Reserve System. Opinions expressed in this article are those of the author(s) and do not necessarily reflect the views of the Federal Reserve Bank of Chicago or the Federal Reserve System. © 2025 Federal Reserve Bank of Chicago AgLetter articles may be reproduced in whole or in part, provided the articles are not reproduced or distributed for commercial gain and provided the source is appropriately credited. Prior written permission must be obtained for any other reproduction, distribution, republication, or creation of derivative works of AgLetter articles. To request permission, please contact Han Y. Choi, editor, at [PHONE REDACTED] or email [EMAIL REDACTED]. AgLetter and other Bank publications are available at Agricultural Land Base Rate - Reference Material - Page 035 ---PAGE BREAK--- The Agricultural Newsletter from the Federal Reserve Bank of Chicago Number 2010, November 2025 Midwest Farmland Values Moved Up Modestly in the Third Quarter Farmland values In the third quarter of 2025, the Seventh Federal Reserve District’s agricultural land values increased 3% from a year ago, matching their year-over-year gain of the previous quarter. Yet values for “good” farmland in the District overall were unchanged in the third quarter of 2025 from those in the second quarter, according to responses from 102 District agricultural bankers who completed the October 1 survey. Illinois, Indiana, and Wisconsin had year-over-year increases in farmland values, while Iowa was the only District state reporting a year-over-year decrease (see figure A quarterly increase in Illinois farmland values was offset by a quarterly decrease in Wisconsin farmland values in the third quarter of 2025; Indiana and Iowa agricultural land values saw no changes from the second quarter of 2025. Credit conditions Agricultural credit conditions for the District softened further in the third quarter of 2025 (see figures 2 and For the July through September period of 2025, repayment rates for non-real-estate farm loans were lower than a year earlier for the eighth quarter in a row. In addition, renewals and extensions of non-real-estate agricultural loans were higher than a year earlier for the ninth straight quarter. The District still saw stronger demand for non-real-estate farm loans in the third quarter of 2025 relative to a year ago; this was the eighth consecutive quarter of stronger demand. The availability of funds for lending by agricultural banks was lower than a year ago for the tenth quarter in a row. The breakdown of the index numbers for the third quarter of 2025 follows: • The index of demand for non-real-estate farm loans was 127; 39% of survey respondents observed higher loan demand compared with a year ago, while 12% observed lower demand. • The index of funds availability stood at 90; 9% of survey respondents noted that their banks had more funds available to lend than a year ago, while 19% noted they had less. • The index of loan repayment rates for non-real-estate agricultural loans was 64; only 2% of responding bankers noted higher rates of loan repayment than a year ago, while 38% noted lower rates. • The index of loan renewals and extensions of non-real- estate farm loans was 134; 35% of survey respondents reported more of them than a year earlier, while just 1% reported fewer. 1. Percent change in dollar value of “good” farmland Top: July 1, 2025 to October 1, 2025 Bottom: October 1, 2024 to October 1, 2025 *Insufficient response. Michigan * Wisconsin –7 +4 Iowa 0 –1 Illinois +2 +4 Indiana 0 +6 Seventh District 0 +3 2. Loan demand and repayment rates for Seventh District non-real-estate farm loans Notes: Index values above 100 indicate more bankers responded that loan demand or repayment rates were higher than a year ago, while index values below 100 indicate more bankers responded that demand or rates were lower. See figure 3 for more details on how the index values are computed. Source: Authors’ calculations based on data from Federal Reserve Bank of Chicago surveys of farmland values. Agricultural Land Base Rate - Reference Material - Page 036 ---PAGE BREAK--- Collateral requirements for farm loans in the third quarter of 2025 rose from the same quarter of last year; 21% of the survey respondents reported that their banks required more collateral, while none reported that their banks required less. The District’s average loan-to-deposit ratio declined to 76.9% in the third quarter of 2025. The gap between the average loan-to-deposit ratio and the average level desired by the responding bankers narrowed from a year ago to around 4 percentage points, with half of the survey respondents stating that their respective banks were below their targeted levels. Agricultural interest rates fell during the third quarter of this year. As of October 1, 2025, the District’s average nominal interest rates on new operating loans feeder cattle loans and farm real estate loans (6.82%) were at their lowest levels since the end of 2022. Looking forward For the final quarter of 2025, 29% of survey respondents expected District agricultural land values to decline expected them to rise and 63% expected them to be stable). In line with these survey results, softer demand by agricultural producers for farmland will likely extend into 2026: 44% of survey respondents expected farmers to have weaker demand to acquire farmland this fall and winter compared with a year earlier, while 10% expected stronger demand. In contrast, 28% of survey respondents anticipated nonfarm investors to have stronger demand to purchase farmland over the same period, though 20% anticipated weaker demand from this market segment. Moreover, responding bankers narrowly projected an increase in the volume of agricultural land transfers during this fall and winter relative to a year ago. An Illinois banker suggested that 2025 losses could lead to “liquidation of farmland to inject additional working capital into farming operations.” Net cash earnings (which include government payments) for crop farmers were expected to be lower over the next three to six months during the fall and winter) than their levels of a year ago; just 3% of survey respondents forecasted them to be higher, while 92% forecasted them to be lower. Similarly, only 2% of survey respondents expected net cash earnings for dairy farmers to increase over the next three to six months relative to a year earlier, while 25% expected them to decrease. By contrast, 71% of responding bankers forecasted net cash earnings for cattle and hog farmers to increase over the next three to six months relative to a year ago, while 9% forecasted them to decrease. Half the survey respondents anticipated a lower volume of farm loan repayments over the next three to six months relative to a year earlier (just 1% predicted a higher volume). Unsurprisingly, given the lower crop and dairy farm income expectations, forced sales or liquidations of farm assets owned by financially distressed farmers were expected to rise in the next three to six months relative to a year ago; 47% of the responding bankers projected them to increase, while only 3% projected them to decrease. Non-real-estate loan volumes were forecasted to be larger in the last three months of 2025 compared with the same three months of 2024. Farm real estate loan volumes were forecasted to be smaller in the final three months of 2025 compared with the same three months of a year earlier. 3. Credit conditions at Seventh District agricultural banks Latest period Prior period Year ago 2025:Q3 2025:Q2 2024:Q3 Indexesa Loan demand 127 121 120 Funds availability 90 90 92 Loan repayment rates 64 71 76 Loan renewals and extensions 134 135 128 Average loan-to-deposit ratiob 76.9 78.1 75.7 Interest rates on farm loansc Operating loans 7.47 7.63 8.12 Feeder cattle loans 7.57 7.69 8.09 Real estate loans 6.82 7.02 7.19 aBankers responded to each item by indicating whether conditions in the current quarter were higher or lower than (or the same as) in the year-earlier quarter. The index numbers are computed by subtracting the percentage of bankers who responded “lower” from the percentage who responded “higher” and adding 100. bDuring period (in percent). cAt end of period (in percent). Note: Historical data on Seventh District agricultural credit conditions are available online. David B. Oppedahl, policy advisor, and Elizabeth Kepner, business economist AgLetter (ISSN 1080-8639) is published quarterly by the Economic Research Department of the Federal Reserve Bank of Chicago. The information used in the preparation of this publication is obtained from sources considered reliable, but its use does not constitute an endorsement of its accuracy or intent by the Federal Reserve Bank of Chicago or the Federal Reserve System. Opinions expressed in this article are those of the author(s) and do not necessarily reflect the views of the Federal Reserve Bank of Chicago or the Federal Reserve System. © 2025 Federal Reserve Bank of Chicago AgLetter articles may be reproduced in whole or in part, provided the articles are not reproduced or distributed for commercial gain and provided the source is appropriately credited. Prior written permission must be obtained for any other reproduction, distribution, republication, or creation of derivative works of AgLetter articles. To request permission, please contact Han Y. Choi, editor, at [PHONE REDACTED] or email [EMAIL REDACTED]. AgLetter and other Bank publications are available at Agricultural Land Base Rate - Reference Material - Page 037 ---PAGE BREAK--- Income Approach: November, Annual Average, & Marketing Year Average Prices January 1, 2026 Column A B C D E F G H I J K L Source or Formula: Line # Corn Beans Corn Beans Corn Beans Corn Beans Corn Beans Corn Beans 1 Yield 187 59 195 60 190 57.5 203 61 198 59 206 59 IASS - Crop Summary 2 Price - November 3.82 10.30 5.37 12.20 6.41 14.10 4.52 13.10 4.01 10.20 4.08 9.91 IASS - Crop Prices 3 Price - Annual Avg. 3.75 9.27 5.45 13.08 6.74 15.02 5.90 14.26 4.27 11.50 4.42 10.35 DLGF Calculation 4 Price - Market Avg. 3.84 8.92 4.65 11.10 6.07 13.30 6.48 14.40 4.50 12.60 4.32 10.40 IASS - Crop Prices 5 GI - November 714.34 607.70 1047.15 732.00 1217.90 810.75 917.56 799.10 793.98 601.80 840.48 584.69 Line 1 times Line 2 6 GI -Annual Avg. 701.25 546.93 1062.75 784.80 1280.60 863.65 1197.70 869.86 845.46 678.50 910.52 610.65 Line 1 times Line 3 7 GI - Market Avg. 718.08 526.28 906.75 666.00 1153.30 764.75 1315.44 878.40 891.00 743.40 889.92 613.60 Line 1 times Line 4 8 AA v Nov -13.09 -60.77 15.60 52.80 62.70 52.90 280.14 70.76 51.48 76.70 70.04 25.96 Line 6 minus Line 5 9 MA v Nov 3.74 -81.42 -140.40 -66.00 -64.60 -46.00 397.88 79.30 97.02 141.60 49.44 28.91 Line 7 minus Line 5 10 NRTL - November 166 366 318 122 -13 0 DLGF Calculation 11 NRTL - Annual Avg 129 400 376 297 51 48 Line 10 + or - Avg. Line 8 12 NRTL - Market Avg 127 263 263 361 106 39 Line 10 + or - Avg. Line 9 13 NRTL Average 141 343 319 260 48 29 Average Lines 10, 11, & 12 14 FRBC RE Rate 0.0431 0.0404 0.0564 0.0744 0.0738 0.0694 Fed. Res. Bank of Chicago 15 FRBC OP Rate 0.0469 0.0438 0.0602 0.0831 0.0820 0.0758 Fed. Res. Bank of Chicago 16 Avg. FRBC Rate 0.0450 0.0421 0.0583 0.0788 0.0779 0.0726 Average Lines 14 & 15 17 Operating Market Value In Use 3,133 8,147 5,472 3,299 616 399 Line 13 / Line 16 NRTL = Net Return To Land FRBC = Federal Reserve Bank of Chicago Sources: (Pages references within this packet) 1 Yield 2 Price - November 3 Price - Annual Avg. 4 Price - Market Avg. 10 NRTL - November 14 FRBC RE Rate 15 FRBC OP Rate 16 Avg. FRBC Rate P-43 & 51 P-39 Line 12 P-27 P-27 P-39 Line 12 P-27 P-27 P-27 P-27 P-27 P-27 P-27 P-27 P-27 P-27 P-27 2025 2024 2021 2025 2024 2022 P-27 2020 P-39 Line 12 P-39 Line 12 P-39 Line 12 2023 P-40 P-40 P-43 & 51 P-27 P-27 P-43 & 51 P-43 & 51 P-27 P-39 Line 12 P-43 & 51 P-43 & 51 P-27 P-43 & 51 P-43 & 51 P-43 & 51 P-43 & 51 2020 2021 2022 2023 P-43 & 51 P-43 & 51 P-40 P-40 P-43 & 51 P-43 & 51 P-43 & 51 P-43 & 51 P-40 P-40 P-43 & 51 P-43 & 51 Agricultural Land Base Rate - Reference Material - Page 038 ---PAGE BREAK--- Doster/Huie -Table 1 A B C D E F G H I J K L Source of Updated - December, 2025 Information Line # Corn Beans Corn Beans Corn Beans Corn Beans Corn Beans Corn Beans 1 Yield per Acre 187 59 195 60 190 57.5 203 61 198 59 206 59 IN Ag. Stats. Service 2 Price per Bu. - November 3.82 10.30 5.37 12.20 6.41 14.10 4.52 13.10 4.01 10.20 4.08 9.91 IN Ag. Stats. Service 3 Sales [PHONE REDACTED] 732 1218 811 918 799 794 602 840 585 Line 1 X Line 2 4 Less Variable Costs 418 235 424 243 660 329 683 345 627 337 654 348 Purdue Crop Guide 5 Contribution Margin 296 373 623 489 558 482 235 454 167 265 186 237 Line 3 - Line 4 6 Plus Government Pymt. IN Ag. Stats. Service 7 Total Contribution Margin Lines 5 + 6 / 2 Less Overhead: 8 Annual Machinery Purdue Crop Guide 9 Drying/Handling Purdue Crop Guide 10 Family/Hired Labor Purdue Crop Guide 11 Real Estate Tax DLGF Study 12 Net ReturnTo Land - Nov. Line 7 - 8,9,10, 11 Sources: (Pages references within this packet) 1 Yield per Acre IN Ag. Stats. Service 2 Price per Bu. - November IN Ag. Stats. Service 4 Less Variable Costs Purdue Crop Guide 6 Plus Government Pymt. IN Ag. Stats. Service 8 Annual Machinery Purdue Crop Guide 9 Drying/Handling Purdue Crop Guide 10 Family/Hired Labor Purdue Crop Guide 11 Real Estate Tax DLGF Study Foundation for Calculation: Doster/Huie Publication titled "A Method for Assessing Indiana Cropland-An Income Approach to Value" dated June 24, 1999 (See P-11 thru P-15 with emphasis on Table 1 found on P-14) 2022 2023 10 349 13 526 2021 2020 [PHONE REDACTED] 2023 2021 49 581 2020 2025 38 231 2024 9 220 P-40 P-40 50 35 22 139 64 56 24 130 0 30 -13 64 146 139 P-26 P-26 P-26 P-26 P-26 P-26 P-73 N/A P-73 P-76 N/A P-76 P-67 N/A P-67 P-70 N/A P-70 P-61 N/A P-61 P-64 N/A P-64 2024 2025 P-77 P-77 P-77 P-77 P-77 P-77 P-59 P-62 P-65 P-68 P-71 P-74 P- 40 & 41 P- 43 & 51 P- 43 & 51 P- 43 & 51 P- 43 & 51 P- 43 & 51 P-40 P-40 P-40 P-40 366 65 25 166 130 102 386 130 64 21 Agricultural Land Base Rate - Reference Material - Page 039 ---PAGE BREAK--- Indiana Corn Yields: Indiana Soybean Yields: 1985 123 1985 41.5 1986 122 1986 37 1987 135 1987 40 1988 83 1988 27.5 1989 133 1989 36.5 1990 129 1990 41 1991 92 1991 39 1992 147 1992 43 1993 132 1993 46 1994 144 1994 47 1995 113 1995 39.5 1996 123 1996 38 1997 122 1997 43.5 1998 137 1998 42 1999 132 1999 39 2000 146 2000 46 2001 156 2001 49 2002 121 2002 41.5 2003 146 2003 38 2004 168 2004 51.5 2005 154 2005 49 2006 157 2006 50 2007 154 2007 46 2008 160 2008 45 2009 171 2009 49 2010 157 2010 48.5 2011 146 2011 45.5 2012 99 2012 44 2013 177 2013 51.5 2014 188 2014 55.5 2015 150 2015 50 2016 173 2016 57.5 2017 180 2017 54 2018 189 2018 57.5 2019 169 2019 51 2020 187 P-41 2020 59 P-42 2021 195 P-41 2021 60 P-42 2022 190 P-41 2022 57.5 P-42 2023 203 P-41 2023 61 P-42 2024 198 P-41 2024 59 P-42 2025 206 P-41 2025 59 P-42 Source: Indiana Agricultural Statistics Service Agricultural Land Base Rate - Reference Material - Page 040 ---PAGE BREAK--- Program Year Period Week Ending Geo Level State State ANSI Ag District Ag District Code County County ANSI Zip Code Region watershed_code Watershed Commodity Data Item Domain Domain Category Value CV SURVEY 2025 YEAR STATE INDIANA 18 00000000 CORN CORN, GRAIN - YIELD, MEASURED IN BU / ACRE TOTAL NOT SPECIFIED 206 SURVEY 2024 YEAR STATE INDIANA 18 00000000 CORN CORN, GRAIN - YIELD, MEASURED IN BU / ACRE TOTAL NOT SPECIFIED 198 SURVEY 2023 YEAR STATE INDIANA 18 00000000 CORN CORN, GRAIN - YIELD, MEASURED IN BU / ACRE TOTAL NOT SPECIFIED 203 SURVEY 2022 YEAR STATE INDIANA 18 00000000 CORN CORN, GRAIN - YIELD, MEASURED IN BU / ACRE TOTAL NOT SPECIFIED 190 SURVEY 2021 YEAR STATE INDIANA 18 00000000 CORN CORN, GRAIN - YIELD, MEASURED IN BU / ACRE TOTAL NOT SPECIFIED 195 SURVEY 2020 YEAR STATE INDIANA 18 00000000 CORN CORN, GRAIN - YIELD, MEASURED IN BU / ACRE TOTAL NOT SPECIFIED 187 Quick Stats Home Recent Statistics Developers Help Agricultural Land Base Rate - Reference Material - Page 041 ---PAGE BREAK--- Program Year Period Week Ending Geo Level State State ANSI Ag District Ag District Code County County ANSI Zip Code Region watershed_code Watershed Commodity Data Item Domain Domain Category Value CV SURVEY 2025 YEAR STATE INDIANA 18 00000000 SOYBEANS SOYBEANS - YIELD, MEASURED IN BU / ACRE TOTAL NOT SPECIFIED 59 SURVEY 2024 YEAR STATE INDIANA 18 00000000 SOYBEANS SOYBEANS - YIELD, MEASURED IN BU / ACRE TOTAL NOT SPECIFIED 59 SURVEY 2023 YEAR STATE INDIANA 18 00000000 SOYBEANS SOYBEANS - YIELD, MEASURED IN BU / ACRE TOTAL NOT SPECIFIED 61 SURVEY 2022 YEAR STATE INDIANA 18 00000000 SOYBEANS SOYBEANS - YIELD, MEASURED IN BU / ACRE TOTAL NOT SPECIFIED 57.5 SURVEY 2021 YEAR STATE INDIANA 18 00000000 SOYBEANS SOYBEANS - YIELD, MEASURED IN BU / ACRE TOTAL NOT SPECIFIED 60 SURVEY 2020 YEAR STATE INDIANA 18 00000000 SOYBEANS SOYBEANS - YIELD, MEASURED IN BU / ACRE TOTAL NOT SPECIFIED 59 Quick Stats Home Recent Statistics Developers Help Agricultural Land Base Rate - Reference Material - Page 042 ---PAGE BREAK--- Corn Prices Source: Indiana Agricultural Statistics Annual Marketing Jan. Feb. March April May June July Aug. Sept. Oct. Nov. Dec. Average Average * 2005 2.09 2.01 2.01 1.96 2.02 2.07 2.20 1.97 1.80 1.72 1.71 2.04 1.97 1.99 2006 2.09 2.07 2.15 2.20 2.26 2.21 2.31 2.08 2.32 2.70 3.03 3.23 2.39 2.00 2007 3.16 3.53 3.64 3.54 3.65 3.73 3.36 3.27 3.32 3.34 3.68 4.07 3.52 3.17 2008 4.23 4.67 4.96 5.49 5.82 5.89 5.92 5.67 4.73 4.15 4.04 4.14 4.98 4.39 2009 4.46 4.06 3.92 4.11 4.12 4.14 3.64 3.45 3.31 3.70 3.66 3.62 3.85 4.10 2010 3.79 3.69 3.62 3.51 3.65 3.55 3.69 3.80 4.24 4.50 4.82 4.94 3.98 3.66 2011 4.95 5.78 5.80 6.71 6.62 6.82 7.04 7.18 6.14 5.89 5.94 6.02 6.24 5.38 2012 6.21 6.46 6.59 6.56 6.52 6.55 7.43 7.92 7.37 7.22 7.43 7.27 6.96 6.31 2013 7.26 7.38 7.48 7.12 7.16 7.15 6.71 6.38 5.11 4.34 4.17 4.37 6.22 7.23 2014 4.49 4.48 4.68 4.86 4.91 4.63 4.07 3.88 3.59 3.48 3.54 3.80 4.20 4.47 2015 3.86 3.93 3.94 3.84 3.74 3.67 4.03 3.90 3.85 3.87 3.97 3.88 3.87 3.75 2016 3.97 3.92 3.93 3.97 4.09 4.26 3.89 3.54 3.41 3.40 3.44 3.57 3.78 3.92 2017 3.64 3.73 3.77 3.77 3.79 3.84 3.86 3.64 3.42 3.38 3.32 3.42 3.63 3.63 2018 3.54 3.59 3.72 3.80 3.92 3.81 3.60 3.54 3.45 3.44 3.49 3.70 3.63 3.56 2019 3.76 3.79 3.75 3.68 3.81 4.28 4.55 4.27 3.96 4.01 3.92 4.00 3.98 3.78 2020 4.10 4.04 4.03 3.61 3.43 3.41 3.51 3.48 3.77 3.73 3.82 4.06 3.75 3.84 2021 4.32 4.74 4.95 5.39 5.87 6.32 6.22 6.39 5.32 4.97 5.37 5.58 5.45 4.65 2022 5.59 6.14 6.59 7.07 7.03 7.47 7.14 7.30 7.05 6.46 6.41 6.58 6.74 6.07 2023 6.50 6.69 6.57 6.63 6.49 6.54 6.14 5.79 5.36 4.85 4.52 4.74 5.90 6.48 2024 4.74 4.57 4.46 4.42 4.60 4.42 4.18 3.71 3.86 3.96 4.01 4.32 4.27 4.50 2025 4.32 4.66 4.77 4.76 4.79 4.64 4.52 4.16 4.14 4.08 4.08 4.08 4.42 4.32 *Marketing average is September of the previous year to August in the current year. Example: The USDA shows 2024 Marketing Year Average as being September 2024 to August 2025. Source: Pages 44-50 of this packet Note: November & December 2025 prices were not available at the time this calculation was made so the October 2025 price was carried over. Agricultural Land Base Rate - Reference Material - Page 043 ---PAGE BREAK--- Program Year Period Week Ending Geo Level State State ANSI Ag District Ag District Code County County ANSI Zip Code Region watershed_code Watershed Commodity Data Item Domain Domain Category Value CV SURVEY 2020 APR STATE INDIANA 18 00000000 CORN CORN, GRAIN - PRICE RECEIVED, MEASURED IN $ / BU TOTAL NOT SPECIFIED 3.61 SURVEY 2020 AUG STATE INDIANA 18 00000000 CORN CORN, GRAIN - PRICE RECEIVED, MEASURED IN $ / BU TOTAL NOT SPECIFIED 3.48 SURVEY 2020 DEC STATE INDIANA 18 00000000 CORN CORN, GRAIN - PRICE RECEIVED, MEASURED IN $ / BU TOTAL NOT SPECIFIED 4.06 SURVEY 2020 FEB STATE INDIANA 18 00000000 CORN CORN, GRAIN - PRICE RECEIVED, MEASURED IN $ / BU TOTAL NOT SPECIFIED 4.04 SURVEY 2020 JAN STATE INDIANA 18 00000000 CORN CORN, GRAIN - PRICE RECEIVED, MEASURED IN $ / BU TOTAL NOT SPECIFIED 4.1 SURVEY 2020 JUL STATE INDIANA 18 00000000 CORN CORN, GRAIN - PRICE RECEIVED, MEASURED IN $ / BU TOTAL NOT SPECIFIED 3.51 SURVEY 2020 JUN STATE INDIANA 18 00000000 CORN CORN, GRAIN - PRICE RECEIVED, MEASURED IN $ / BU TOTAL NOT SPECIFIED 3.41 SURVEY 2020 MAR STATE INDIANA 18 00000000 CORN CORN, GRAIN - PRICE RECEIVED, MEASURED IN $ / BU TOTAL NOT SPECIFIED 4.03 SURVEY 2020 MAY STATE INDIANA 18 00000000 CORN CORN, GRAIN - PRICE RECEIVED, MEASURED IN $ / BU TOTAL NOT SPECIFIED 3.43 SURVEY 2020 NOV STATE INDIANA 18 00000000 CORN CORN, GRAIN - PRICE RECEIVED, MEASURED IN $ / BU TOTAL NOT SPECIFIED 3.82 SURVEY 2020 OCT STATE INDIANA 18 00000000 CORN CORN, GRAIN - PRICE RECEIVED, MEASURED IN $ / BU TOTAL NOT SPECIFIED 3.73 SURVEY 2020 SEP STATE INDIANA 18 00000000 CORN CORN, GRAIN - PRICE RECEIVED, MEASURED IN $ / BU TOTAL NOT SPECIFIED 3.77 Quick Stats Home Recent Statistics Developers Help Agricultural Land Base Rate - Reference Material - Page 044 ---PAGE BREAK--- Program Year Period Week Ending Geo Level State State ANSI Ag District Ag District Code County County ANSI Zip Code Region watershed_code Watershed Commodity Data Item Domain Domain Category Value CV SURVEY 2021 APR STATE INDIANA 18 00000000 CORN CORN, GRAIN - PRICE RECEIVED, MEASURED IN $ / BU TOTAL NOT SPECIFIED 5.39 SURVEY 2021 AUG STATE INDIANA 18 00000000 CORN CORN, GRAIN - PRICE RECEIVED, MEASURED IN $ / BU TOTAL NOT SPECIFIED 6.39 SURVEY 2021 DEC STATE INDIANA 18 00000000 CORN CORN, GRAIN - PRICE RECEIVED, MEASURED IN $ / BU TOTAL NOT SPECIFIED 5.58 SURVEY 2021 FEB STATE INDIANA 18 00000000 CORN CORN, GRAIN - PRICE RECEIVED, MEASURED IN $ / BU TOTAL NOT SPECIFIED 4.74 SURVEY 2021 JAN STATE INDIANA 18 00000000 CORN CORN, GRAIN - PRICE RECEIVED, MEASURED IN $ / BU TOTAL NOT SPECIFIED 4.32 SURVEY 2021 JUL STATE INDIANA 18 00000000 CORN CORN, GRAIN - PRICE RECEIVED, MEASURED IN $ / BU TOTAL NOT SPECIFIED 6.22 SURVEY 2021 JUN STATE INDIANA 18 00000000 CORN CORN, GRAIN - PRICE RECEIVED, MEASURED IN $ / BU TOTAL NOT SPECIFIED 6.32 SURVEY 2021 MAR STATE INDIANA 18 00000000 CORN CORN, GRAIN - PRICE RECEIVED, MEASURED IN $ / BU TOTAL NOT SPECIFIED 4.95 SURVEY 2021 MAY STATE INDIANA 18 00000000 CORN CORN, GRAIN - PRICE RECEIVED, MEASURED IN $ / BU TOTAL NOT SPECIFIED 5.87 SURVEY 2021 NOV STATE INDIANA 18 00000000 CORN CORN, GRAIN - PRICE RECEIVED, MEASURED IN $ / BU TOTAL NOT SPECIFIED 5.37 SURVEY 2021 OCT STATE INDIANA 18 00000000 CORN CORN, GRAIN - PRICE RECEIVED, MEASURED IN $ / BU TOTAL NOT SPECIFIED 4.97 SURVEY 2021 SEP STATE INDIANA 18 00000000 CORN CORN, GRAIN - PRICE RECEIVED, MEASURED IN $ / BU TOTAL NOT SPECIFIED 5.32 Quick Stats Home Recent Statistics Developers Help Agricultural Land Base Rate - Reference Material - Page 045 ---PAGE BREAK--- Program Year Period Week Ending Geo Level State State ANSI Ag District Ag District Code County County ANSI Zip Code Region watershed_code Watershed Commodity Data Item Domain Domain Category Value CV SURVEY 2022 APR STATE INDIANA 18 00000000 CORN CORN, GRAIN - PRICE RECEIVED, MEASURED IN $ / BU TOTAL NOT SPECIFIED 7.07 SURVEY 2022 AUG STATE INDIANA 18 00000000 CORN CORN, GRAIN - PRICE RECEIVED, MEASURED IN $ / BU TOTAL NOT SPECIFIED 7.3 SURVEY 2022 DEC STATE INDIANA 18 00000000 CORN CORN, GRAIN - PRICE RECEIVED, MEASURED IN $ / BU TOTAL NOT SPECIFIED 6.58 SURVEY 2022 FEB STATE INDIANA 18 00000000 CORN CORN, GRAIN - PRICE RECEIVED, MEASURED IN $ / BU TOTAL NOT SPECIFIED 6.14 SURVEY 2022 JAN STATE INDIANA 18 00000000 CORN CORN, GRAIN - PRICE RECEIVED, MEASURED IN $ / BU TOTAL NOT SPECIFIED 5.59 SURVEY 2022 JUL STATE INDIANA 18 00000000 CORN CORN, GRAIN - PRICE RECEIVED, MEASURED IN $ / BU TOTAL NOT SPECIFIED 7.14 SURVEY 2022 JUN STATE INDIANA 18 00000000 CORN CORN, GRAIN - PRICE RECEIVED, MEASURED IN $ / BU TOTAL NOT SPECIFIED 7.47 SURVEY 2022 MAR STATE INDIANA 18 00000000 CORN CORN, GRAIN - PRICE RECEIVED, MEASURED IN $ / BU TOTAL NOT SPECIFIED 6.59 SURVEY 2022 MAY STATE INDIANA 18 00000000 CORN CORN, GRAIN - PRICE RECEIVED, MEASURED IN $ / BU TOTAL NOT SPECIFIED 7.03 SURVEY 2022 NOV STATE INDIANA 18 00000000 CORN CORN, GRAIN - PRICE RECEIVED, MEASURED IN $ / BU TOTAL NOT SPECIFIED 6.41 SURVEY 2022 OCT STATE INDIANA 18 00000000 CORN CORN, GRAIN - PRICE RECEIVED, MEASURED IN $ / BU TOTAL NOT SPECIFIED 6.46 SURVEY 2022 SEP STATE INDIANA 18 00000000 CORN CORN, GRAIN - PRICE RECEIVED, MEASURED IN $ / BU TOTAL NOT SPECIFIED 7.05 Quick Stats Home Recent Statistics Developers Help Agricultural Land Base Rate - Reference Material - Page 046 ---PAGE BREAK--- Program Year Period Week Ending Geo Level State State ANSI Ag District Ag District Code County County ANSI Zip Code Region watershed_code Watershed Commodity Data Item Domain Domain Category Value CV SURVEY 2023 APR STATE INDIANA 18 00000000 CORN CORN, GRAIN - PRICE RECEIVED, MEASURED IN $ / BU TOTAL NOT SPECIFIED 6.63 SURVEY 2023 AUG STATE INDIANA 18 00000000 CORN CORN, GRAIN - PRICE RECEIVED, MEASURED IN $ / BU TOTAL NOT SPECIFIED 5.79 SURVEY 2023 DEC STATE INDIANA 18 00000000 CORN CORN, GRAIN - PRICE RECEIVED, MEASURED IN $ / BU TOTAL NOT SPECIFIED 4.74 SURVEY 2023 FEB STATE INDIANA 18 00000000 CORN CORN, GRAIN - PRICE RECEIVED, MEASURED IN $ / BU TOTAL NOT SPECIFIED 6.69 SURVEY 2023 JAN STATE INDIANA 18 00000000 CORN CORN, GRAIN - PRICE RECEIVED, MEASURED IN $ / BU TOTAL NOT SPECIFIED 6.5 SURVEY 2023 JUL STATE INDIANA 18 00000000 CORN CORN, GRAIN - PRICE RECEIVED, MEASURED IN $ / BU TOTAL NOT SPECIFIED 6.14 SURVEY 2023 JUN STATE INDIANA 18 00000000 CORN CORN, GRAIN - PRICE RECEIVED, MEASURED IN $ / BU TOTAL NOT SPECIFIED 6.54 SURVEY 2023 MAR STATE INDIANA 18 00000000 CORN CORN, GRAIN - PRICE RECEIVED, MEASURED IN $ / BU TOTAL NOT SPECIFIED 6.57 SURVEY 2023 MAY STATE INDIANA 18 00000000 CORN CORN, GRAIN - PRICE RECEIVED, MEASURED IN $ / BU TOTAL NOT SPECIFIED 6.49 SURVEY 2023 NOV STATE INDIANA 18 00000000 CORN CORN, GRAIN - PRICE RECEIVED, MEASURED IN $ / BU TOTAL NOT SPECIFIED 4.52 SURVEY 2023 OCT STATE INDIANA 18 00000000 CORN CORN, GRAIN - PRICE RECEIVED, MEASURED IN $ / BU TOTAL NOT SPECIFIED 4.85 SURVEY 2023 SEP STATE INDIANA 18 00000000 CORN CORN, GRAIN - PRICE RECEIVED, MEASURED IN $ / BU TOTAL NOT SPECIFIED 5.36 Quick Stats Home Recent Statistics Developers Help Agricultural Land Base Rate - Reference Material - Page 047 ---PAGE BREAK--- Program Year Period Week Ending Geo Level State State ANSI Ag District Ag District Code County County ANSI Zip Code Region watershed_code Watershed Commodity Data Item Domain Domain Category Value CV SURVEY 2024 APR STATE INDIANA 18 00000000 CORN CORN, GRAIN - PRICE RECEIVED, MEASURED IN $ / BU TOTAL NOT SPECIFIED 4.42 SURVEY 2024 AUG STATE INDIANA 18 00000000 CORN CORN, GRAIN - PRICE RECEIVED, MEASURED IN $ / BU TOTAL NOT SPECIFIED 3.71 SURVEY 2024 DEC STATE INDIANA 18 00000000 CORN CORN, GRAIN - PRICE RECEIVED, MEASURED IN $ / BU TOTAL NOT SPECIFIED 4.32 SURVEY 2024 FEB STATE INDIANA 18 00000000 CORN CORN, GRAIN - PRICE RECEIVED, MEASURED IN $ / BU TOTAL NOT SPECIFIED 4.57 SURVEY 2024 JAN STATE INDIANA 18 00000000 CORN CORN, GRAIN - PRICE RECEIVED, MEASURED IN $ / BU TOTAL NOT SPECIFIED 4.74 SURVEY 2024 JUL STATE INDIANA 18 00000000 CORN CORN, GRAIN - PRICE RECEIVED, MEASURED IN $ / BU TOTAL NOT SPECIFIED 4.18 SURVEY 2024 JUN STATE INDIANA 18 00000000 CORN CORN, GRAIN - PRICE RECEIVED, MEASURED IN $ / BU TOTAL NOT SPECIFIED 4.42 SURVEY 2024 MAR STATE INDIANA 18 00000000 CORN CORN, GRAIN - PRICE RECEIVED, MEASURED IN $ / BU TOTAL NOT SPECIFIED 4.46 SURVEY 2024 MAY STATE INDIANA 18 00000000 CORN CORN, GRAIN - PRICE RECEIVED, MEASURED IN $ / BU TOTAL NOT SPECIFIED 4.6 SURVEY 2024 NOV STATE INDIANA 18 00000000 CORN CORN, GRAIN - PRICE RECEIVED, MEASURED IN $ / BU TOTAL NOT SPECIFIED 4.01 SURVEY 2024 OCT STATE INDIANA 18 00000000 CORN CORN, GRAIN - PRICE RECEIVED, MEASURED IN $ / BU TOTAL NOT SPECIFIED 3.96 SURVEY 2024 SEP STATE INDIANA 18 00000000 CORN CORN, GRAIN - PRICE RECEIVED, MEASURED IN $ / BU TOTAL NOT SPECIFIED 3.86 Quick Stats Home Recent Statistics Developers Help Agricultural Land Base Rate - Reference Material - Page 048 ---PAGE BREAK--- Program Year Period Week Ending Geo Level State State ANSI Ag District Ag District Code County County ANSI Zip Code Region watershed_code Watershed Commodity Data Item Domain Domain Category Value CV SURVEY 2025 APR STATE INDIANA 18 00000000 CORN CORN, GRAIN - PRICE RECEIVED, MEASURED IN $ / BU TOTAL NOT SPECIFIED 4.76 SURVEY 2025 AUG STATE INDIANA 18 00000000 CORN CORN, GRAIN - PRICE RECEIVED, MEASURED IN $ / BU TOTAL NOT SPECIFIED 4.16 SURVEY 2025 FEB STATE INDIANA 18 00000000 CORN CORN, GRAIN - PRICE RECEIVED, MEASURED IN $ / BU TOTAL NOT SPECIFIED 4.66 SURVEY 2025 JAN STATE INDIANA 18 00000000 CORN CORN, GRAIN - PRICE RECEIVED, MEASURED IN $ / BU TOTAL NOT SPECIFIED 4.32 SURVEY 2025 JUL STATE INDIANA 18 00000000 CORN CORN, GRAIN - PRICE RECEIVED, MEASURED IN $ / BU TOTAL NOT SPECIFIED 4.52 SURVEY 2025 JUN STATE INDIANA 18 00000000 CORN CORN, GRAIN - PRICE RECEIVED, MEASURED IN $ / BU TOTAL NOT SPECIFIED 4.64 SURVEY 2025 MAR STATE INDIANA 18 00000000 CORN CORN, GRAIN - PRICE RECEIVED, MEASURED IN $ / BU TOTAL NOT SPECIFIED 4.77 SURVEY 2025 MAY STATE INDIANA 18 00000000 CORN CORN, GRAIN - PRICE RECEIVED, MEASURED IN $ / BU TOTAL NOT SPECIFIED 4.79 SURVEY 2025 NOV STATE INDIANA 18 00000000 CORN CORN, GRAIN - PRICE RECEIVED, MEASURED IN $ / BU TOTAL NOT SPECIFIED 4.17 SURVEY 2025 OCT STATE INDIANA 18 00000000 CORN CORN, GRAIN - PRICE RECEIVED, MEASURED IN $ / BU TOTAL NOT SPECIFIED 4.08 SURVEY 2025 SEP STATE INDIANA 18 00000000 CORN CORN, GRAIN - PRICE RECEIVED, MEASURED IN $ / BU TOTAL NOT SPECIFIED 4.14 Quick Stats Home Recent Statistics Developers Help Agricultural Land Base Rate - Reference Material - Page 049 ---PAGE BREAK--- Program Year Period Week Ending Geo Level State State ANSI Ag District Ag District Code County County ANSI Zip Code Region watershed_code Watershed Commodity Data Item Domain Domain Category Value CV SURVEY 2024 MARKETING YEAR STATE INDIANA 18 00000000 CORN CORN, GRAIN - PRICE RECEIVED, MEASURED IN $ / BU TOTAL NOT SPECIFIED 4.32 SURVEY 2023 MARKETING YEAR STATE INDIANA 18 00000000 CORN CORN, GRAIN - PRICE RECEIVED, MEASURED IN $ / BU TOTAL NOT SPECIFIED 4.5 SURVEY 2022 MARKETING YEAR STATE INDIANA 18 00000000 CORN CORN, GRAIN - PRICE RECEIVED, MEASURED IN $ / BU TOTAL NOT SPECIFIED 6.48 SURVEY 2021 MARKETING YEAR STATE INDIANA 18 00000000 CORN CORN, GRAIN - PRICE RECEIVED, MEASURED IN $ / BU TOTAL NOT SPECIFIED 6.07 SURVEY 2020 MARKETING YEAR STATE INDIANA 18 00000000 CORN CORN, GRAIN - PRICE RECEIVED, MEASURED IN $ / BU TOTAL NOT SPECIFIED 4.65 SURVEY 2019 MARKETING YEAR STATE INDIANA 18 00000000 CORN CORN, GRAIN - PRICE RECEIVED, MEASURED IN $ / BU TOTAL NOT SPECIFIED 3.84 Quick Stats Home Recent Statistics Developers Help Agricultural Land Base Rate - Reference Material - Page 050 ---PAGE BREAK--- Soybean Prices Source: Indiana Agricultural Statistics Annual Marketing Jan. Feb. March April May June July Aug. Sept. Oct. Nov. Dec. Average Average * 2005 5.57 5.46 6.02 5.99 6.32 6.76 6.93 6.29 5.76 5.60 5.58 6.01 6.02 5.66 2006 6.06 5.83 5.76 5.69 5.83 5.80 5.85 5.53 5.40 5.63 6.13 6.38 5.82 5.78 2007 6.44 6.95 7.17 7.13 7.36 7.83 7.97 8.03 8.49 8.81 9.65 10.30 8.01 6.53 2008 10.10 12.30 11.70 12.30 12.80 14.50 14.50 13.50 11.00 9.78 9.47 9.70 11.80 10.20 2009 10.30 9.88 9.49 10.10 11.10 11.90 11.10 11.00 9.97 9.49 9.63 10.20 10.35 10.20 2010 10.00 9.82 9.70 9.79 9.77 9.79 10.10 10.50 10.10 10.60 11.50 12.20 10.32 9.80 2011 11.70 13.00 12.80 13.30 13.70 13.40 13.70 13.70 12.90 11.80 11.80 11.90 12.81 11.50 2012 12.20 12.50 13.10 14.00 14.10 14.10 15.90 16.40 14.80 14.50 14.60 14.50 14.23 12.70 2013 14.60 14.80 15.00 14.70 15.10 15.60 15.80 14.90 13.40 12.60 12.70 13.10 14.36 14.70 2014 13.20 13.40 13.90 14.60 14.80 14.70 13.70 12.90 11.00 10.00 10.20 10.50 12.74 13.20 2015 10.50 10.20 10.10 9.94 9.91 9.91 10.30 10.00 9.00 8.80 8.84 8.94 9.70 10.20 2016 8.93 8.80 8.90 9.29 10.10 10.90 10.70 10.30 9.62 9.45 9.64 9.91 9.71 9.16 2017 9.96 10.10 9.97 9.51 9.58 9.27 9.77 9.47 9.50 9.42 9.41 9.56 9.63 9.69 2018 9.61 9.79 10.10 10.30 10.50 10.20 8.94 8.85 8.75 8.64 8.60 8.94 9.44 9.61 2019 8.94 8.91 8.83 8.57 8.39 8.71 8.80 8.60 8.60 8.93 8.94 9.17 8.78 8.73 2020 9.22 9.04 9.01 8.64 8.62 8.70 8.87 8.80 9.44 9.81 10.30 10.80 9.27 8.92 2021 10.90 12.60 13.00 14.00 15.00 14.40 14.30 13.60 12.40 11.90 12.20 12.70 13.08 11.10 2022 12.90 14.60 15.50 15.90 16.00 17.00 16.00 15.40 14.50 13.60 14.10 14.70 15.02 13.30 2023 14.40 15.10 15.10 15.10 14.80 14.50 15.10 14.50 13.20 12.80 13.10 13.40 14.26 14.40 2024 13.20 12.40 12.50 12.10 12.20 12.40 11.80 10.40 10.50 10.20 10.20 10.10 11.50 12.60 2025 10.40 10.50 10.50 10.40 10.90 10.80 10.60 10.30 10.10 9.91 9.91 9.91 10.35 10.40 *Marketing average is September of the previous year to August in the current year. Example: The USDA shows 2024 Marketing Year Average as being September 2024 to August 2025. Source: Page 52 & 58 of this packet Note: November & December 2025 prices were not available at the time this calculation was made so the October 2025 price was carried over. Agricultural Land Base Rate - Reference Material - Page 051 ---PAGE BREAK--- Program Year Period Week Ending Geo Level State State ANSI Ag District Ag District Code County County ANSI Zip Code Region watershed_code Watershed Commodity Data Item Domain Domain Category Value CV SURVEY 2020 APR STATE INDIANA 18 00000000 SOYBEANS SOYBEANS - PRICE RECEIVED, MEASURED IN $ / BU TOTAL NOT SPECIFIED 8.64 SURVEY 2020 AUG STATE INDIANA 18 00000000 SOYBEANS SOYBEANS - PRICE RECEIVED, MEASURED IN $ / BU TOTAL NOT SPECIFIED 8.8 SURVEY 2020 DEC STATE INDIANA 18 00000000 SOYBEANS SOYBEANS - PRICE RECEIVED, MEASURED IN $ / BU TOTAL NOT SPECIFIED 10.8 SURVEY 2020 FEB STATE INDIANA 18 00000000 SOYBEANS SOYBEANS - PRICE RECEIVED, MEASURED IN $ / BU TOTAL NOT SPECIFIED 9.04 SURVEY 2020 JAN STATE INDIANA 18 00000000 SOYBEANS SOYBEANS - PRICE RECEIVED, MEASURED IN $ / BU TOTAL NOT SPECIFIED 9.22 SURVEY 2020 JUL STATE INDIANA 18 00000000 SOYBEANS SOYBEANS - PRICE RECEIVED, MEASURED IN $ / BU TOTAL NOT SPECIFIED 8.87 SURVEY 2020 JUN STATE INDIANA 18 00000000 SOYBEANS SOYBEANS - PRICE RECEIVED, MEASURED IN $ / BU TOTAL NOT SPECIFIED 8.7 SURVEY 2020 MAR STATE INDIANA 18 00000000 SOYBEANS SOYBEANS - PRICE RECEIVED, MEASURED IN $ / BU TOTAL NOT SPECIFIED 9.01 SURVEY 2020 MAY STATE INDIANA 18 00000000 SOYBEANS SOYBEANS - PRICE RECEIVED, MEASURED IN $ / BU TOTAL NOT SPECIFIED 8.62 SURVEY 2020 NOV STATE INDIANA 18 00000000 SOYBEANS SOYBEANS - PRICE RECEIVED, MEASURED IN $ / BU TOTAL NOT SPECIFIED 10.3 SURVEY 2020 OCT STATE INDIANA 18 00000000 SOYBEANS SOYBEANS - PRICE RECEIVED, MEASURED IN $ / BU TOTAL NOT SPECIFIED 9.81 SURVEY 2020 SEP STATE INDIANA 18 00000000 SOYBEANS SOYBEANS - PRICE RECEIVED, MEASURED IN $ / BU TOTAL NOT SPECIFIED 9.44 Quick Stats Home Recent Statistics Developers Help Agricultural Land Base Rate - Reference Material - Page 052 ---PAGE BREAK--- Program Year Period Week Ending Geo Level State State ANSI Ag District Ag District Code County County ANSI Zip Code Region watershed_code Watershed Commodity Data Item Domain Domain Category Value CV SURVEY 2021 APR STATE INDIANA 18 00000000 SOYBEANS SOYBEANS - PRICE RECEIVED, MEASURED IN $ / BU TOTAL NOT SPECIFIED 14 SURVEY 2021 AUG STATE INDIANA 18 00000000 SOYBEANS SOYBEANS - PRICE RECEIVED, MEASURED IN $ / BU TOTAL NOT SPECIFIED 13.6 SURVEY 2021 DEC STATE INDIANA 18 00000000 SOYBEANS SOYBEANS - PRICE RECEIVED, MEASURED IN $ / BU TOTAL NOT SPECIFIED 12.7 SURVEY 2021 FEB STATE INDIANA 18 00000000 SOYBEANS SOYBEANS - PRICE RECEIVED, MEASURED IN $ / BU TOTAL NOT SPECIFIED 12.6 SURVEY 2021 JAN STATE INDIANA 18 00000000 SOYBEANS SOYBEANS - PRICE RECEIVED, MEASURED IN $ / BU TOTAL NOT SPECIFIED 10.9 SURVEY 2021 JUL STATE INDIANA 18 00000000 SOYBEANS SOYBEANS - PRICE RECEIVED, MEASURED IN $ / BU TOTAL NOT SPECIFIED 14.3 SURVEY 2021 JUN STATE INDIANA 18 00000000 SOYBEANS SOYBEANS - PRICE RECEIVED, MEASURED IN $ / BU TOTAL NOT SPECIFIED 14.4 SURVEY 2021 MAR STATE INDIANA 18 00000000 SOYBEANS SOYBEANS - PRICE RECEIVED, MEASURED IN $ / BU TOTAL NOT SPECIFIED 13 SURVEY 2021 MAY STATE INDIANA 18 00000000 SOYBEANS SOYBEANS - PRICE RECEIVED, MEASURED IN $ / BU TOTAL NOT SPECIFIED 15 SURVEY 2021 NOV STATE INDIANA 18 00000000 SOYBEANS SOYBEANS - PRICE RECEIVED, MEASURED IN $ / BU TOTAL NOT SPECIFIED 12.2 SURVEY 2021 OCT STATE INDIANA 18 00000000 SOYBEANS SOYBEANS - PRICE RECEIVED, MEASURED IN $ / BU TOTAL NOT SPECIFIED 11.9 SURVEY 2021 SEP STATE INDIANA 18 00000000 SOYBEANS SOYBEANS - PRICE RECEIVED, MEASURED IN $ / BU TOTAL NOT SPECIFIED 12.4 Quick Stats Home Recent Statistics Developers Help Agricultural Land Base Rate - Reference Material - Page 053 ---PAGE BREAK--- Program Year Period Week Ending Geo Level State State ANSI Ag District Ag District Code County County ANSI Zip Code Region watershed_code Watershed Commodity Data Item Domain Domain Category Value CV SURVEY 2022 APR STATE INDIANA 18 00000000 SOYBEANS SOYBEANS - PRICE RECEIVED, MEASURED IN $ / BU TOTAL NOT SPECIFIED 15.9 SURVEY 2022 AUG STATE INDIANA 18 00000000 SOYBEANS SOYBEANS - PRICE RECEIVED, MEASURED IN $ / BU TOTAL NOT SPECIFIED 15.4 SURVEY 2022 DEC STATE INDIANA 18 00000000 SOYBEANS SOYBEANS - PRICE RECEIVED, MEASURED IN $ / BU TOTAL NOT SPECIFIED 14.8 SURVEY 2022 FEB STATE INDIANA 18 00000000 SOYBEANS SOYBEANS - PRICE RECEIVED, MEASURED IN $ / BU TOTAL NOT SPECIFIED 14.6 SURVEY 2022 JAN STATE INDIANA 18 00000000 SOYBEANS SOYBEANS - PRICE RECEIVED, MEASURED IN $ / BU TOTAL NOT SPECIFIED 12.9 SURVEY 2022 JUL STATE INDIANA 18 00000000 SOYBEANS SOYBEANS - PRICE RECEIVED, MEASURED IN $ / BU TOTAL NOT SPECIFIED 16 SURVEY 2022 JUN STATE INDIANA 18 00000000 SOYBEANS SOYBEANS - PRICE RECEIVED, MEASURED IN $ / BU TOTAL NOT SPECIFIED 17 SURVEY 2022 MAR STATE INDIANA 18 00000000 SOYBEANS SOYBEANS - PRICE RECEIVED, MEASURED IN $ / BU TOTAL NOT SPECIFIED 15.5 SURVEY 2022 MAY STATE INDIANA 18 00000000 SOYBEANS SOYBEANS - PRICE RECEIVED, MEASURED IN $ / BU TOTAL NOT SPECIFIED 16 SURVEY 2022 NOV STATE INDIANA 18 00000000 SOYBEANS SOYBEANS - PRICE RECEIVED, MEASURED IN $ / BU TOTAL NOT SPECIFIED 14.1 SURVEY 2022 OCT STATE INDIANA 18 00000000 SOYBEANS SOYBEANS - PRICE RECEIVED, MEASURED IN $ / BU TOTAL NOT SPECIFIED 13.6 SURVEY 2022 SEP STATE INDIANA 18 00000000 SOYBEANS SOYBEANS - PRICE RECEIVED, MEASURED IN $ / BU TOTAL NOT SPECIFIED 14.5 Quick Stats Home Recent Statistics Developers Help Agricultural Land Base Rate - Reference Material - Page 054 ---PAGE BREAK--- Program Year Period Week Ending Geo Level State State ANSI Ag District Ag District Code County County ANSI Zip Code Region watershed_code Watershed Commodity Data Item Domain Domain Category Value CV SURVEY 2023 APR STATE INDIANA 18 00000000 SOYBEANS SOYBEANS - PRICE RECEIVED, MEASURED IN $ / BU TOTAL NOT SPECIFIED 15.1 SURVEY 2023 AUG STATE INDIANA 18 00000000 SOYBEANS SOYBEANS - PRICE RECEIVED, MEASURED IN $ / BU TOTAL NOT SPECIFIED 14.5 SURVEY 2023 DEC STATE INDIANA 18 00000000 SOYBEANS SOYBEANS - PRICE RECEIVED, MEASURED IN $ / BU TOTAL NOT SPECIFIED 13.4 SURVEY 2023 FEB STATE INDIANA 18 00000000 SOYBEANS SOYBEANS - PRICE RECEIVED, MEASURED IN $ / BU TOTAL NOT SPECIFIED 15.1 SURVEY 2023 JAN STATE INDIANA 18 00000000 SOYBEANS SOYBEANS - PRICE RECEIVED, MEASURED IN $ / BU TOTAL NOT SPECIFIED 14.4 SURVEY 2023 JUL STATE INDIANA 18 00000000 SOYBEANS SOYBEANS - PRICE RECEIVED, MEASURED IN $ / BU TOTAL NOT SPECIFIED 15.1 SURVEY 2023 JUN STATE INDIANA 18 00000000 SOYBEANS SOYBEANS - PRICE RECEIVED, MEASURED IN $ / BU TOTAL NOT SPECIFIED 14.5 SURVEY 2023 MAR STATE INDIANA 18 00000000 SOYBEANS SOYBEANS - PRICE RECEIVED, MEASURED IN $ / BU TOTAL NOT SPECIFIED 15.1 SURVEY 2023 MAY STATE INDIANA 18 00000000 SOYBEANS SOYBEANS - PRICE RECEIVED, MEASURED IN $ / BU TOTAL NOT SPECIFIED 14.8 SURVEY 2023 NOV STATE INDIANA 18 00000000 SOYBEANS SOYBEANS - PRICE RECEIVED, MEASURED IN $ / BU TOTAL NOT SPECIFIED 13.1 SURVEY 2023 OCT STATE INDIANA 18 00000000 SOYBEANS SOYBEANS - PRICE RECEIVED, MEASURED IN $ / BU TOTAL NOT SPECIFIED 12.8 SURVEY 2023 SEP STATE INDIANA 18 00000000 SOYBEANS SOYBEANS - PRICE RECEIVED, MEASURED IN $ / BU TOTAL NOT SPECIFIED 13.2 Quick Stats Home Recent Statistics Developers Help Agricultural Land Base Rate - Reference Material - Page 055 ---PAGE BREAK--- Program Year Period Week Ending Geo Level State State ANSI Ag District Ag District Code County County ANSI Zip Code Region watershed_code Watershed Commodity Data Item Domain Domain Category Value CV SURVEY 2024 APR STATE INDIANA 18 00000000 SOYBEANS SOYBEANS - PRICE RECEIVED, MEASURED IN $ / BU TOTAL NOT SPECIFIED 12.1 SURVEY 2024 AUG STATE INDIANA 18 00000000 SOYBEANS SOYBEANS - PRICE RECEIVED, MEASURED IN $ / BU TOTAL NOT SPECIFIED 10.4 SURVEY 2024 DEC STATE INDIANA 18 00000000 SOYBEANS SOYBEANS - PRICE RECEIVED, MEASURED IN $ / BU TOTAL NOT SPECIFIED 10.1 SURVEY 2024 FEB STATE INDIANA 18 00000000 SOYBEANS SOYBEANS - PRICE RECEIVED, MEASURED IN $ / BU TOTAL NOT SPECIFIED 12.4 SURVEY 2024 JAN STATE INDIANA 18 00000000 SOYBEANS SOYBEANS - PRICE RECEIVED, MEASURED IN $ / BU TOTAL NOT SPECIFIED 13.2 SURVEY 2024 JUL STATE INDIANA 18 00000000 SOYBEANS SOYBEANS - PRICE RECEIVED, MEASURED IN $ / BU TOTAL NOT SPECIFIED 11.8 SURVEY 2024 JUN STATE INDIANA 18 00000000 SOYBEANS SOYBEANS - PRICE RECEIVED, MEASURED IN $ / BU TOTAL NOT SPECIFIED 12.4 SURVEY 2024 MAR STATE INDIANA 18 00000000 SOYBEANS SOYBEANS - PRICE RECEIVED, MEASURED IN $ / BU TOTAL NOT SPECIFIED 12.5 SURVEY 2024 MAY STATE INDIANA 18 00000000 SOYBEANS SOYBEANS - PRICE RECEIVED, MEASURED IN $ / BU TOTAL NOT SPECIFIED 12.2 SURVEY 2024 NOV STATE INDIANA 18 00000000 SOYBEANS SOYBEANS - PRICE RECEIVED, MEASURED IN $ / BU TOTAL NOT SPECIFIED 10.2 SURVEY 2024 OCT STATE INDIANA 18 00000000 SOYBEANS SOYBEANS - PRICE RECEIVED, MEASURED IN $ / BU TOTAL NOT SPECIFIED 10.2 SURVEY 2024 SEP STATE INDIANA 18 00000000 SOYBEANS SOYBEANS - PRICE RECEIVED, MEASURED IN $ / BU TOTAL NOT SPECIFIED 10.5 Quick Stats Home Recent Statistics Developers Help Agricultural Land Base Rate - Reference Material - Page 056 ---PAGE BREAK--- Program Year Period Week Ending Geo Level State State ANSI Ag District Ag District Code County County ANSI Zip Code Region watershed_code Watershed Commodity Data Item Domain Domain Category Value CV SURVEY 2025 APR STATE INDIANA 18 00000000 SOYBEANS SOYBEANS - PRICE RECEIVED, MEASURED IN $ / BU TOTAL NOT SPECIFIED 10.4 SURVEY 2025 AUG STATE INDIANA 18 00000000 SOYBEANS SOYBEANS - PRICE RECEIVED, MEASURED IN $ / BU TOTAL NOT SPECIFIED 10.3 SURVEY 2025 FEB STATE INDIANA 18 00000000 SOYBEANS SOYBEANS - PRICE RECEIVED, MEASURED IN $ / BU TOTAL NOT SPECIFIED 10.5 SURVEY 2025 JAN STATE INDIANA 18 00000000 SOYBEANS SOYBEANS - PRICE RECEIVED, MEASURED IN $ / BU TOTAL NOT SPECIFIED 10.4 SURVEY 2025 JUL STATE INDIANA 18 00000000 SOYBEANS SOYBEANS - PRICE RECEIVED, MEASURED IN $ / BU TOTAL NOT SPECIFIED 10.6 SURVEY 2025 JUN STATE INDIANA 18 00000000 SOYBEANS SOYBEANS - PRICE RECEIVED, MEASURED IN $ / BU TOTAL NOT SPECIFIED 10.8 SURVEY 2025 MAR STATE INDIANA 18 00000000 SOYBEANS SOYBEANS - PRICE RECEIVED, MEASURED IN $ / BU TOTAL NOT SPECIFIED 10.5 SURVEY 2025 MAY STATE INDIANA 18 00000000 SOYBEANS SOYBEANS - PRICE RECEIVED, MEASURED IN $ / BU TOTAL NOT SPECIFIED 10.9 SURVEY 2025 NOV STATE INDIANA 18 00000000 SOYBEANS SOYBEANS - PRICE RECEIVED, MEASURED IN $ / BU TOTAL NOT SPECIFIED 10.6 SURVEY 2025 OCT STATE INDIANA 18 00000000 SOYBEANS SOYBEANS - PRICE RECEIVED, MEASURED IN $ / BU TOTAL NOT SPECIFIED 9.91 SURVEY 2025 SEP STATE INDIANA 18 00000000 SOYBEANS SOYBEANS - PRICE RECEIVED, MEASURED IN $ / BU TOTAL NOT SPECIFIED 10.1 Quick Stats Home Recent Statistics Developers Help Agricultural Land Base Rate - Reference Material - Page 057 ---PAGE BREAK--- Program Year Period Week Ending Geo Level State State ANSI Ag District Ag District Code County County ANSI Zip Code Region watershed_code Watershed Commodity Data Item Domain Domain Category Value CV SURVEY 2024 MARKETING YEAR STATE INDIANA 18 00000000 SOYBEANS SOYBEANS - PRICE RECEIVED, MEASURED IN $ / BU TOTAL NOT SPECIFIED 10.4 SURVEY 2023 MARKETING YEAR STATE INDIANA 18 00000000 SOYBEANS SOYBEANS - PRICE RECEIVED, MEASURED IN $ / BU TOTAL NOT SPECIFIED 12.6 SURVEY 2022 MARKETING YEAR STATE INDIANA 18 00000000 SOYBEANS SOYBEANS - PRICE RECEIVED, MEASURED IN $ / BU TOTAL NOT SPECIFIED 14.4 SURVEY 2021 MARKETING YEAR STATE INDIANA 18 00000000 SOYBEANS SOYBEANS - PRICE RECEIVED, MEASURED IN $ / BU TOTAL NOT SPECIFIED 13.3 SURVEY 2020 MARKETING YEAR STATE INDIANA 18 00000000 SOYBEANS SOYBEANS - PRICE RECEIVED, MEASURED IN $ / BU TOTAL NOT SPECIFIED 11.1 SURVEY 2019 MARKETING YEAR STATE INDIANA 18 00000000 SOYBEANS SOYBEANS - PRICE RECEIVED, MEASURED IN $ / BU TOTAL NOT SPECIFIED 8.92 Quick Stats Home Recent Statistics Developers Help Agricultural Land Base Rate - Reference Material - Page 058 ---PAGE BREAK--- Cont. Rot. Rot. DC Cont. Rot. Rot. DC Cont. Rot. Rot. DC Corn Corn Beans Wheat Beans Corn Corn Beans Wheat Beans Corn Corn Beans Wheat Beans Expected yield per acre2 133 141 44 62 31 165 176 54 77 38 198 211 65 93 46 Harvest price3 $3.40 $3.40 $8.35 $5.20 $8.35 $3.40 $3.40 $8.35 $5.20 $8.35 $3.40 $3.40 $8.35 $5.20 $8.35 Market revenue $452 $479 $367 $322 $259 $561 $598 $451 $400 $317 $673 $717 $543 $484 $384 Less variable costs4 Fertilizer5 $119 $107 $38 $53 $28 $126 $115 $45 $70 $34 $133 $123 $53 $87 $39 Seed6 91 91 67 44 78 111 111 67 44 78 111 111 67 44 78 Pesticides7 58 58 50 30 45 58 58 50 30 45 58 58 50 30 45 Dryer fuel8 29 23 N/A N/A 4 36 29 N/A N/A 5 43 34 N/A N/A 6 Machinery fuel @ $2.07 15 15 9 9 7 15 15 9 9 7 15 15 9 9 7 Machinery repairs9 22 22 18 18 15 22 22 18 18 15 22 22 18 18 15 Hauling10 13 14 4 6 3 17 18 5 8 4 20 21 7 9 5 Interest11 11 11 7 5 6 12 12 7 6 6 12 12 7 7 7 Insurance/misc.12 36 36 31 9 9 38 38 34 9 9 40 40 34 9 9 Total variable cost $394 $377 $224 $174 $195 $435 $418 $235 $194 $203 $454 $436 $245 $213 $211 $58 $102 $143 $148 $64 $126 $180 $216 $206 $114 $219 $281 $298 $271 $173 1Estimated yields and costs are for yields with average management for three different soils representing low, average, and high productivity. The high productivity soils represent soils capable of producing corn and soybeans with yields about 20% higher than average soils. Low productivity soils represent soils capable of producing corn and soybeans with yields about 20% lower than the average soils. Both product prices and input prices may have significantly changed since these estimates were prepared. Table 1. Estimated per Acre Crop Budgets for Low, Average, and High Productivity Indiana Soils Crop Budgets for Three Yield Levels1 Low Productivity Soil Average Productivity Soil High Productivity Soil Contribution margin13 (Revenue - variable costs) per acre 2These yields assume average weather conditions and timely plant/harvest dates, except soybean double-crop yield, which is based on a July 1 planting date. Rotation corn, rotation soybean, and wheat yields for average soils are based on the long-run trends in state average yields reported by the Indiana office of the National Agricultural Statistics Service. Continuous corn yields are 94% of rotation corn yields. Double-crop soybean yields are 70% of full-season soybean yields. Continuous corn yields assume a chisel plow tillage system. Double-crop soybean yields apply to central and southern Indiana. 3Harvest corn price is December 2020 CME Group futures price less $0.25 basis. Harvest soybean price is November 2020 CME Group futures price less $0.35 basis. Harvest wheat price is July 2020 CME Group futures price less $.35 basis. Harvest prices were based on opening prices on March 24, 2020. These prices will change. 2020 Purdue Crop Cost & Return Guide March 2020 Estimates Agricultural Land Base Rate - Reference Material - Page 059 ---PAGE BREAK--- Table 1 (Continued) 7Includes insecticides and herbicides. For corn, rootworm insecticide is applied to the refuge acres. In some areas of Indiana, this may not be required. These costs do not include the application of fungicide to corn. If fungicide is applied, this will add an additional $28 to $32 per acre for material and application. Pesticide costs can vary widely based on herbicides selected, required rate of application, and product pricing. 10Hauling charge represents moving grain from field to storage. 6Corn seed prices assume a biotech variety with multiple traits. A 20%-refuge is planted with varieties that do not contain insect resistant traits, but do include herbicide tolerance. Seeding rates for corn are 27,000 seeds per acre on low productivity soils and 33,000 seeds per acre on average and high productivity soils. Soybean seed prices include Round-Up Ready® varieties. Rotation soybeans are drilled with a seeding rate of 169,000 seeds per acre with a 90% germination rate. Double-crop soybeans are drilled with a seeding rate of 195,000 seeds per acre. The seeding rate for wheat is two bushels per acre. 5Phosphate, potash, and lime applications are based on Tri-State Fertilizer Recommendations (Source: Purdue Extension Bulletin, AY-9-32, July 1995). Lime amounts represent the pounds of standard ag lime needed to neutralize the acidity from the nitrogen supplied from sources other than ammonium sulfate. Nitrogen application rate for corn is based on research from the Department of Agronomy, Purdue University. ammonia is used as the nitrogen source for corn. Urea is used as the nitrogen source for wheat. Pounds of N, P205, K20, and lime by crop and soil were as follows: continuous corn, 240-47-55-720, 240-59-63-720, 240-71-72-720; rotation corn, 200-50-57-600, 200-63-66-600, 200-75-75-600; rotation beans, 0-34-79-0, 0-42-93-0, 0-50-107-0; wheat, 58-38- 42-172, 84-47-48-251, 110-57-53-330; double crop beans, 0-23-61-0, 0-29-70-0, 0-34-80-0. Fertilizer prices per lb.: NH3 @ $0.31; urea @ $0.39; P205 @ $0.38; K20 @ $0.30; lime @ $19.00/ton spread on the field. For very poorly drained soils, consider increasing N rates by 5-10%. For well-drained soils, consider reducing N rates by 5-10%. All soil tests for phosphorus and potassium are assumed to be in the maintenance range, and the pH is in the recommended range. ID-166-W Purdue Extension 4Input prices for variable costs reflect expected prices for 2020. These prices will vary by location and time of the year. Users need to adjust these prices to reflect their own expectations and price situation. 2020 Purdue Crop Cost & Return Guide March 2020 Estimates 13Contribution margin is the return to labor and management, machinery ownership, land resources, and risk. 12Includes crop insurance, general farm insurance, and miscellaneous cost. The cost of crop insurance represents the premium projected for a Revenue Protection (RP) policy at the 80% coverage level. Crop insurance is included in budgets for corn and full-season soybeans, but is not included for wheat and double-crop soybeans. 11Interest is based on 5% annual rate for 9 months for seed, fertilizer, and chemicals, and for 6 months for half the machinery fuel and repairs, and all miscellaneous expenses. 8Fuel used to dry crop to a safe moisture level for storage. For double-crop soybeans, the drying charge represents the drying of wheat in order to allow an earlier planting of soybeans. 9Repairs are based on approximately 5-year-old machinery. For older machinery, per acre repairs and downtime cost will be higher. Agricultural Land Base Rate - Reference Material - Page 060 ---PAGE BREAK--- Farm Acres 900 1000 2700 3000 900 1000 2700 3000 900 1000 2700 3000 Rotation1 c-c c-b c-c c-b c-c c-b c-c c-b c-c c-b c-c c-b Crop contribution margin2 $58 $123 $58 $123 $126 $198 $126 $198 $219 $290 $219 $290 Government payment3 $23 $23 $23 $23 $23 $23 $23 $23 $23 $23 $23 $23 Total contribution margin $81 $146 $81 $146 $149 $221 $149 $221 $242 $313 $242 $313 Annual overhead costs: Machinery ownership4 $138 $130 $85 $80 $138 $130 $85 $80 $138 $130 $85 $80 Family and hired labor5 $72 $65 $43 $39 $72 $65 $43 $39 $72 $65 $43 $39 Land6 $159 $159 $159 $159 $208 $208 $208 $208 $257 $257 $257 $257 Earnings or (losses) -$288 -$208 -$206 -$132 -$269 -$182 -$187 -$106 -$225 -$139 -$143 -$63 Average Productivity Soil High Productivity Soil It is the policy of the Purdue University Cooperative Extension Service that all persons have equal opportunity and access to its educational programs, services, activities, and facilities without regard to race, religion, color, sex, age, national origin or ancestry, marital status, parental status, sexual orientation, disability or status as a veteran. Purdue University is an Affirmative Action institution. Date: 3/24/20 Prepared by: Michael R. Langemeier and Craig L. Dobbins, Department of Agricultural Economics; Bob Nielsen, Tony J. Vyn, and Shaun Casteel, Department of Agronomy; and Bill Johnson, Department of Botany and Plant Pathology, Purdue University. 2020 Purdue Crop Cost & Return Guide March 2020 Estimates ID-166-W Purdue Extension 6Based on 2019 cash rent per bushel of corn yield reported in the article entitled "2019 Indiana Farmland Values and Cash Rents Slide Lower," Purdue Agricultural Economics Report, August, 2019. The relatively tight margins expected in 2020 will likely dampen increases in cash rents, thus 2020 cash rents are assumed to be the same as 2019 cash rents. 1Rotations are as follows: c-c = all of the farm acres in continuous corn; c-b = one-half of the farm acres in rotation corn and one-half in rotation soybeans. 2Crop's contribution margin is the per acre contribution margin from Table 1. 3It is assumed that the current farm bill will provide PLC payments for corn base acres in 2020. 4The same basic machinery set, which is timely for each rotation, is used for both the c-c and c-b rotation. The larger farm size requires larger, more expensive machinery. Corn production utilizes a chisel plow tillage system, and soybeans utilize no-till. Average annual replacement costs for the larger farm size were calculated using the Purdue Machinery Cost Calculator for a timely machinery set. Seven-year trading policy is assumed for combine and planter, 10-year policy for other field machinery. On livestock farms where fewer hours each day are available for crops, or on small farms, machinery costs and/or labor costs will be higher. On well-drained soils where more days are suitable for spring field work, machinery costs could be lower. A 10-year trading policy was assumed for all machinery on the smaller acreages. Machinery ownership costs are likely to vary widely from farm to farm. 5For the larger acreages, labor expense includes a family living withdrawal of $78,106 ($90,356 of family living expenses less $42,285 in net nonfarm income plus $30,035 in income and self- employment taxes); a full-time employee with total compensation of $44,071; and a part-time employee with compensation of $3,802. Family living withdrawal information is based on Illinois FBFM summary information. Employee compensation is based on Employee Wage Rates and Compensation Packages on Kansas Farms, Kansas State University, August 2012. For the smaller acreages, labor expense includes the same family living withdrawal and no hired labor. Labor costs are likely to vary widely from farm to farm. Table 2. Estimated per Acre Government Payments, Overhead Costs & Earnings for Low, Average, and High Productivity Indiana Soils Low Productivity Soil Agricultural Land Base Rate - Reference Material - Page 061 ---PAGE BREAK--- Cont. Rot. Rot. DC Cont. Rot. Rot. DC Cont. Rot. Rot. DC Corn Corn Beans Wheat Beans Corn Corn Beans Wheat Beans Corn Corn Beans Wheat Beans Expected yield per acre2 135 144 44 62 31 169 180 55 77 39 203 216 66 93 46 Harvest price3 $4.30 $4.30 $11.50 $6.10 $11.50 $4.30 $4.30 $11.50 $6.10 $11.50 $4.30 $4.30 $11.50 $6.10 $11.50 Market revenue $581 $619 $506 $378 $357 $727 $774 $633 $470 $449 $873 $929 $759 $567 $529 Less variable costs4 Fertilizer5 $123 $111 $43 $59 $32 $132 $121 $52 $76 $38 $141 $131 $61 $95 $44 Seed6 91 91 67 44 78 111 111 67 44 78 111 111 67 44 78 Pesticides7 58 58 50 30 45 58 58 50 30 45 58 58 50 30 45 Dryer fuel8 29 23 N/A N/A 4 36 29 N/A N/A 5 44 35 N/A N/A 6 Machinery fuel @ $2.09 15 15 9 9 7 15 15 9 9 7 15 15 9 9 7 Machinery repairs9 22 22 18 18 15 22 22 18 18 15 22 22 18 18 15 Hauling10 14 14 4 6 3 17 18 6 8 4 20 22 7 9 5 Interest11 11 11 7 6 6 12 12 7 6 7 13 12 7 7 7 Insurance/misc.12 36 36 31 9 9 38 38 34 9 9 40 40 34 9 9 Total variable cost $399 $381 $229 $181 $199 $441 $424 $243 $200 $208 $464 $446 $253 $221 $216 $182 $238 $277 $197 $158 $286 $350 $390 $270 $241 $409 $483 $506 $346 $313 1Estimated yields and costs are for yields with average management for three different soils representing low, average, and high productivity. The high productivity soils represent soils capable of producing corn and soybeans with yields about 20% higher than average soils. Low productivity soils represent soils capable of producing corn and soybeans with yields about 20% lower than the average soils. Both product prices and input prices may have significantly changed since these estimates were prepared. Table 1. Estimated per Acre Crop Budgets for Low, Average, and High Productivity Indiana Soils Crop Budgets for Three Yield Levels1 Low Productivity Soil Average Productivity Soil High Productivity Soil Contribution margin13 (Revenue - variable costs) per acre 2These yields assume average weather conditions and timely plant/harvest dates, except soybean double-crop yield, which is based on a July 1 planting date. Rotation corn, rotation soybean, and wheat yields for average soils are based on the long-run trends in state average yields reported by the Indiana office of the National Agricultural Statistics Service. Continuous corn yields are 94% of rotation corn yields. Double-crop soybean yields are 70% of full-season soybean yields. Continuous corn yields assume a chisel plow tillage system. Double-crop soybean yields apply to central and southern Indiana. 3Harvest corn price is December 2021 CME Group futures price less $0.25 basis. Harvest soybean price is November 2021 CME Group futures price less $0.35 basis. Harvest wheat price is July 2021 CME Group futures price less $.35 basis. Harvest prices were based on opening prices on February 9, 2021. These prices will change. 2021 Purdue Crop Cost & Return Guide February 2021 Estimates Agricultural Land Base Rate - Reference Material - Page 062 ---PAGE BREAK--- Table 1 (Continued) 7Includes insecticides and herbicides. For corn, rootworm insecticide is applied to the refuge acres. In some areas of Indiana, this may not be required. These costs do not include the application of fungicide to corn. If fungicide is applied, this will add an additional $28 to $32 per acre for material and application. Pesticide costs can vary widely based on herbicides selected, required rate of application, and product pricing. 10Hauling charge represents moving grain from field to storage. 6Corn seed prices assume a biotech variety with multiple traits. A 20%-refuge is planted with varieties that do not contain insect resistant traits, but do include herbicide tolerance. Seeding rates for corn are 27,000 seeds per acre on low productivity soils and 33,000 seeds per acre on average and high productivity soils. Soybean seed prices include Round-Up Ready® varieties. Rotation soybeans are drilled with a seeding rate of 169,000 seeds per acre with a 90% germination rate. Double-crop soybeans are drilled with a seeding rate of 195,000 seeds per acre. The seeding rate for wheat is two bushels per acre. 5Phosphate, potash, and lime applications are based on Tri-State Fertilizer Recommendations (Source: Purdue Extension Bulletin, AY-9-32, July 1995). Lime amounts represent the pounds of standard ag lime needed to neutralize the acidity from the nitrogen supplied from sources other than ammonium sulfate. Nitrogen application rate for corn is based on research from the Department of Agronomy, Purdue University. ammonia is used as the nitrogen source for corn. Urea is used as the nitrogen source for wheat. Pounds of N, P205, K20, and lime by crop and soil were as follows: continuous corn, 240-47-55-720, 240-59-63-720, 240-71-72-720; rotation corn, 200-50-57-600, 200-63-66-600, 200-75-75-600; rotation beans, 0-34-79-0, 0-42-93-0, 0-50-107-0; wheat, 58-38- 42-172, 84-47-48-251, 110-57-53-330; double crop beans, 0-23-61-0, 0-29-70-0, 0-34-80-0. Fertilizer prices per lb.: NH3 @ $0.31; urea @ $0.40; P205 @ $0.49; K20 @ $0.31; lime @ $19.00/ton spread on the field. For very poorly drained soils, consider increasing N rates by 5-10%. For well-drained soils, consider reducing N rates by 5-10%. All soil tests for phosphorus and potassium are assumed to be in the maintenance range, and the pH is in the recommended range. ID-166-W Purdue Extension 4Input prices for variable costs reflect expected prices for 2021. These prices will vary by location and time of the year. Users need to adjust these prices to reflect their own expectations and price situation. 2021 Purdue Crop Cost & Return Guide February 2021 Estimates 13Contribution margin is the return to labor and management, machinery ownership, land resources, and risk. 12Includes crop insurance, general farm insurance, and miscellaneous cost. The cost of crop insurance represents the premium projected for a Revenue Protection (RP) policy at the 80% coverage level. Crop insurance is included in budgets for corn and full-season soybeans, but is not included for wheat and double-crop soybeans. 11Interest is based on 5% annual rate for 9 months for seed, fertilizer, and chemicals, and for 6 months for half the machinery fuel and repairs, and all miscellaneous expenses. 8Fuel used to dry crop to a safe moisture level for storage. For double-crop soybeans, the drying charge represents the drying of wheat in order to allow an earlier planting of soybeans. 9Repairs are based on approximately 5-year-old machinery. For older machinery, per acre repairs and downtime cost will be higher. Agricultural Land Base Rate - Reference Material - Page 063 ---PAGE BREAK--- Farm Acres 900 1000 2700 3000 900 1000 2700 3000 900 1000 2700 3000 Rotation1 c-c c-b c-c c-b c-c c-b c-c c-b c-c c-b c-c c-b Crop contribution margin2 $182 $258 $182 $258 $286 $370 $286 $370 $409 $495 $409 $495 Government payment3 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 Total contribution margin $182 $258 $182 $258 $286 $370 $286 $370 $409 $495 $409 $495 Annual overhead costs: Machinery ownership4 $138 $130 $85 $80 $138 $130 $85 $80 $138 $130 $85 $80 Family and hired labor5 $72 $64 $43 $39 $72 $64 $43 $39 $72 $64 $43 $39 Land6 $171 $171 $171 $171 $223 $223 $223 $223 $274 $274 $274 $274 Earnings or (losses) -$199 -$107 -$117 -$32 -$147 -$47 -$65 $28 -$75 $27 $7 $102 Average Productivity Soil High Productivity Soil It is the policy of the Purdue University Cooperative Extension Service that all persons have equal opportunity and access to its educational programs, services, activities, and facilities without regard to race, religion, color, sex, age, national origin or ancestry, marital status, parental status, sexual orientation, disability or status as a veteran. Purdue University is an Affirmative Action institution. Date: 2/9/21 Prepared by: Michael R. Langemeier and Craig L. Dobbins, Department of Agricultural Economics; Bob Nielsen, Tony J. Vyn, and Shaun Casteel, Department of Agronomy; and Bill Johnson, Department of Botany and Plant Pathology, Purdue University. 2021 Purdue Crop Cost & Return Guide February 2021 Estimates ID-166-W Purdue Extension 6Based on 2020 cash rent per bushel of corn yield reported in the article entitled "Indiana Farmland Values Increase but Signal Concern of Potential COVID-19 Slump," Purdue Agricultural Economics Report, July, 2020. The relatively tight margins expected in 2020 will likely dampen increases in cash rents, thus 2021 cash rents are assumed to be the same as 2020 cash rents. 1Rotations are as follows: c-c = all of the farm acres in continuous corn; c-b = one-half of the farm acres in rotation corn and one-half in rotation soybeans. 2Crop's contribution margin is the per acre contribution margin from Table 1. 3It is assumed that the current farm bill will not provide ARC-CO or PLC payments for base acres in 2021. 4The same basic machinery set, which is timely for each rotation, is used for both the c-c and c-b rotation. The larger farm size requires larger, more expensive machinery. Corn production utilizes a chisel plow tillage system, and soybeans utilize no-till. Average annual replacement costs for the larger farm size were calculated using the Purdue Machinery Cost Calculator for a timely machinery set. Seven-year trading policy is assumed for combine and planter, 10-year policy for other field machinery. On livestock farms where fewer hours each day are available for crops, or on small farms, machinery costs and/or labor costs will be higher. On well-drained soils where more days are suitable for spring field work, machinery costs could be lower. A 10-year trading policy was assumed for all machinery on the smaller acreages. Machinery ownership costs are likely to vary widely from farm to farm. 5For the larger acreages, labor expense includes a family living withdrawal of $64,488 ($84,991 of family living expenses less $45,217 in net nonfarm income plus $24,714 in income and self- employment taxes); a full-time employee with total compensation of $47,141; and a part-time employee with compensation of $4,066. Family living withdrawal information is based on Illinois FBFM summary information. Employee compensation is based on Employee Wage Rates and Compensation Packages on Kansas Farms, Kansas State University, August 2012. For the smaller acreages, labor expense includes the same family living withdrawal and no hired labor. Labor costs are likely to vary widely from farm to farm. Table 2. Estimated per Acre Government Payments, Overhead Costs & Earnings for Low, Average, and High Productivity Indiana Soils Low Productivity Soil Agricultural Land Base Rate - Reference Material - Page 064 ---PAGE BREAK--- Cont. Rot. Rot. DC Cont. Rot. Rot. DC Cont. Rot. Rot. DC Corn Corn Beans Wheat Beans Corn Corn Beans Wheat Beans Corn Corn Beans Wheat Beans Expected yield per acre2 141 150 45 65 32 171 182 55 78 39 201 214 65 92 46 Harvest price3 $6.25 $6.25 $14.35 $10.50 $14.35 $6.25 $6.25 $14.35 $10.50 $14.35 $6.25 $6.25 $14.35 $10.50 $14.35 Market revenue $881 $938 $646 $683 $459 $1,069 $1,138 $789 $819 $560 $1,256 $1,338 $933 $966 $660 Less variable costs4 Fertilizer5 $305 $271 $85 $128 $64 $319 $286 $100 $160 $75 $333 $301 $116 $195 $86 Seed6 97 97 71 44 82 118 118 71 44 82 118 118 71 44 82 Pesticides7 73 73 63 38 56 73 73 63 38 56 73 73 63 38 56 Dryer fuel8 45 36 N/A N/A 4 54 43 N/A N/A 5 64 51 N/A N/A 6 Machinery fuel @ $4.40 33 33 20 20 14 33 33 20 20 14 33 33 20 20 14 Machinery repairs9 22 22 18 18 15 22 22 18 18 15 22 22 18 18 15 Hauling10 14 15 5 7 3 17 18 6 8 4 20 21 7 9 5 Interest11 19 18 9 9 8 20 19 10 10 9 21 20 10 11 9 Insurance/misc.12 43 43 38 9 9 48 48 41 9 9 53 53 43 9 9 Total variable cost $651 $608 $309 $273 $255 $704 $660 $329 $307 $269 $737 $692 $348 $344 $282 $230 $330 $337 $410 $204 $365 $478 $460 $512 $291 $519 $646 $585 $622 $378 2These yields assume average weather conditions and timely plant/harvest dates, except soybean double-crop yield, which is based on a July 1 planting date. Rotation corn, rotation soybean, and wheat yields for average soils are based on the long-run trends in state average yields reported by the Indiana office of the National Agricultural Statistics Service. Continuous corn yields are 94% of rotation corn yields. Double-crop soybean yields are 70% of full-season soybean yields. Continuous corn yields assume a chisel plow tillage system. Double-crop soybean yields apply to central and southern Indiana. 3Harvest corn price is December 2022 CME Group futures price less $0.25 basis. Harvest soybean price is November 2022 CME Group futures price less $0.35 basis. Harvest wheat price is July 2022 CME Group futures price less $.35 basis. Harvest prices were based on opening prices on March 21, 2022. These prices will change. 1Estimated yields and costs are for yields with average management for three different soils representing low, average, and high productivity. The high productivity soils represent soils capable of producing corn and soybeans with yields about 20% higher than average soils. Low productivity soils represent soils capable of producing corn and soybeans with yields about 20% lower than the average soils. Both product prices and input prices may have significantly changed since these estimates were prepared. Table 1. Estimated per Acre Crop Budgets for Low, Average, and High Productivity Indiana Soils Crop Budgets for Three Yield Levels1 Low Productivity Soil Average Productivity Soil High Productivity Soil Contribution margin13 (Revenue - variable costs) per acre 2022 Purdue Crop Cost & Return Guide March 2022 Estimates Agricultural Land Base Rate - Reference Material - Page 065 ---PAGE BREAK--- Table 1 (Continued) 13Contribution margin is the return to labor and management, machinery ownership, land resources, and risk. 12Includes crop insurance, general farm insurance, and miscellaneous cost. The cost of crop insurance represents the premium projected for a Revenue Protection (RP) policy at the 80% coverage level. Crop insurance is included in budgets for corn and full-season soybeans, but is not included for wheat and double-crop soybeans. 11Interest is based on 5% annual rate for 9 months for seed, fertilizer, and chemicals, and for 6 months for half the machinery fuel and repairs, and all miscellaneous expenses. 8Fuel used to dry crop to a safe moisture level for storage. For double-crop soybeans, the drying charge represents the drying of wheat in order to allow an earlier planting of soybeans. 9Repairs are based on approximately 5-year-old machinery. For older machinery, per acre repairs and downtime cost will be higher. 7Includes insecticides and herbicides. For corn, rootworm insecticide is applied to the refuge acres. In some areas of Indiana, this may not be required. These costs do not include the application of fungicide to corn. If fungicide is applied, this will add an additional $28 to $32 per acre for material and application. Pesticide costs can vary widely based on herbicides selected, required rate of application, and product pricing. 10Hauling charge represents moving grain from field to storage. 6Corn seed prices assume a biotech variety with multiple traits. A 20%-refuge is planted with varieties that do not contain insect resistant traits, but do include herbicide tolerance. Seeding rates for corn are 27,000 seeds per acre on low productivity soils and 33,000 seeds per acre on average and high productivity soils. Soybean seed prices include Round-Up Ready® varieties. Rotation soybeans are drilled with a seeding rate of 169,000 seeds per acre with a 90% germination rate. Double-crop soybeans are drilled with a seeding rate of 195,000 seeds per acre. The seeding rate for wheat is two bushels per acre. 5Phosphate, potash, and lime applications are based on Tri-State Fertilizer Recommendations (Source: Purdue Extension Bulletin, AY-9-32, July 1995). Lime amounts represent the pounds of standard ag lime needed to neutralize the acidity from the nitrogen supplied from sources other than ammonium sulfate. Nitrogen application rate for corn is based on research from the Department of Agronomy, Purdue University. ammonia is used as the nitrogen source for corn. Urea is used as the nitrogen source for wheat. Pounds of N, P205, K20, and lime by crop and soil were as follows: continuous corn, 240-47-55-720, 240-59-63-720, 240-71-72-720; rotation corn, 200-50-57-600, 200-63-66-600, 200-75-75-600; rotation beans, 0-34-79-0, 0-42-93-0, 0-50-107-0; wheat, 58-38- 42-172, 84-47-48-251, 110-57-53-330; double crop beans, 0-23-61-0, 0-29-70-0, 0-34-80-0. Fertilizer prices per lb.: NH3 @ $0.92; urea @ $0.97; P205 @ $0.76; K20 @ $0.69; lime @ $19.00/ton spread on the field. For very poorly drained soils, consider increasing N rates by 5-10%. For well-drained soils, consider reducing N rates by 5-10%. All soil tests for phosphorus and potassium are assumed to be in the maintenance range, and the pH is in the recommended range. ID-166-W Purdue Extension 4Input prices for variable costs reflect expected prices for 2022. These prices will vary by location and time of the year. Users need to adjust these prices to reflect their own expectations and price situation. 2022 Purdue Crop Cost & Return Guide March 2022 Estimates Agricultural Land Base Rate - Reference Material - Page 066 ---PAGE BREAK--- Farm Acres 900 1000 2700 3000 900 1000 2700 3000 900 1000 2700 3000 Rotation1 c-c c-b c-c c-b c-c c-b c-c c-b c-c c-b c-c c-b Crop contribution margin2 $230 $334 $230 $334 $365 $469 $365 $469 $519 $616 $519 $616 Government payment3 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 Total contribution margin $230 $334 $230 $334 $365 $469 $365 $469 $519 $616 $519 $616 Annual overhead costs: Machinery ownership4 $138 $130 $92 $86 $138 $130 $92 $86 $138 $130 $92 $86 Family and hired labor5 $63 $56 $39 $35 $63 $56 $39 $35 $63 $56 $39 $35 Land6 $189 $189 $189 $189 $239 $239 $239 $239 $285 $285 $285 $285 Earnings or (losses) -$159 -$41 -$90 $23 -$74 $44 $108 $34 $145 $103 $209 Average Productivity Soil High Productivity Soil It is the policy of the Purdue University Cooperative Extension Service that all persons have equal opportunity and access to its educational programs, services, activities, and facilities without regard to race, religion, color, sex, age, national origin or ancestry, marital status, parental status, sexual orientation, disability or status as a veteran. Purdue University is an Affirmative Action institution. Date: 3/21/22 Prepared by: Michael R. Langemeier, Department of Agricultural Economics; Bob Nielsen, Tony J. Vyn, and Shaun Casteel, Department of Agronomy; and Bill Johnson, Department of Botany and Plant Pathology, Purdue University. 2022 Purdue Crop Cost & Return Guide March 2022 Estimates ID-166-W Purdue Extension 6Based on 2021 cash rent per bushel of corn yield reported in the article entitled "Indiana Farmland Prices Hit New Record High in 2021," Purdue Agricultural Economics Report, July, 2021. The relatively strong crop prices in 2021 will likely create upward pressure on cash rents, thus 2022 cash rents are assumed to be 5% higher than 2021 cash rents. 1Rotations are as follows: c-c = all of the farm acres in continuous corn; c-b = one-half of the farm acres in rotation corn and one-half in rotation soybeans. 2Crop's contribution margin is the per acre contribution margin from Table 1. 3It is assumed that the current farm bill will not provide ARC-CO or PLC payments for base acres in 2022. 4The same basic machinery set, which is timely for each rotation, is used for both the c-c and c-b rotation. The larger farm size requires larger, more expensive machinery. Corn production utilizes a chisel plow tillage system, and soybeans utilize no-till. Average annual replacement costs for the larger farm size were calculated using the Purdue Machinery Cost Calculator for a timely machinery set. Seven-year trading policy is assumed for combine and planter, 10-year policy for other field machinery. On livestock farms where fewer hours each day are available for crops, or on small farms, machinery costs and/or labor costs will be higher. On well-drained soils where more days are suitable for spring field work, machinery costs could be lower. A 10-year trading policy was assumed for all machinery on the smaller acreages. Machinery ownership costs are likely to vary widely from farm to farm. 5For the larger acreages, operator labor expense incoroporates information pertaining to total family living, net nonfarm income, and income and self-employment taxes obtained from FINBIN, Center for Farm Financial Management, University of Minnesota. The larger acreages also included hired labor. FINBIN data was used to compute hourly hired labor wages. For the smaller acreages, labor expense includes the same family living withdrawal and no hired labor. Labor costs are likely to vary widely from farm to farm. Table 2. Estimated per Acre Government Payments, Overhead Costs & Earnings for Low, Average, and High Productivity Indiana Soils Low Productivity Soil Agricultural Land Base Rate - Reference Material - Page 067 ---PAGE BREAK--- Cont. Rot. Rot. DC Cont. Rot. Rot. DC Cont. Rot. Rot. DC Corn Corn Beans Wheat Beans Corn Corn Beans Wheat Beans Corn Corn Beans Wheat Beans Expected yield per acre2 143 152 46 65 32 173 184 56 79 39 203 216 66 93 46 Harvest price3 $5.25 $5.25 $12.40 $6.40 $12.40 $5.25 $5.25 $12.40 $6.40 $12.40 $5.25 $5.25 $12.40 $6.40 $12.40 Market revenue $751 $798 $570 $416 $397 $908 $966 $694 $506 $484 $1,066 $1,134 $818 $595 $570 Less variable costs4 Fertilizer5 $247 $221 $73 $105 $54 $260 $235 $86 $133 $63 $272 $248 $100 $161 $73 Seed6 102 102 74 44 86 124 124 74 44 86 124 124 74 44 86 Pesticides7 126 119 75 45 65 126 119 75 45 65 126 119 75 45 65 Dryer fuel8 45 36 N/A N/A 4 54 43 N/A N/A 5 63 51 N/A N/A 6 Machinery fuel @ $3.61 27 27 16 16 12 27 27 16 16 12 27 27 16 16 12 Machinery repairs9 34 34 29 29 24 34 34 29 29 24 34 34 29 29 24 Hauling10 15 16 5 7 3 18 19 6 8 4 21 23 7 10 5 Interest11 34 32 17 15 15 37 34 18 16 16 37 35 19 18 16 Insurance/misc.12 43 43 38 9 9 48 48 41 9 9 53 53 43 9 9 Total variable cost $673 $630 $327 $270 $272 $728 $683 $345 $300 $284 $757 $714 $363 $332 $296 $78 $168 $243 $146 $125 $180 $283 $349 $206 $200 $309 $420 $455 $263 $274 2These yields assume average weather conditions and timely plant/harvest dates, except soybean double-crop yield, which is based on a July 1 planting date. Rotation corn, rotation soybean, and wheat yields for average soils are based on the long-run trends in state average yields reported by the Indiana office of the National Agricultural Statistics Service. Continuous corn yields are 94% of rotation corn yields. Double-crop soybean yields are 70% of full-season soybean yields. Continuous corn yields assume a chisel plow tillage system. Double-crop soybean yields apply to central and southern Indiana. 3Harvest corn price is December 2023 CME Group futures price less $0.25 basis. Harvest soybean price is November 2023 CME Group futures price less $0.35 basis. Harvest wheat price is July 2023 CME Group futures price less $.35 basis. Harvest prices were based on opening prices on March 23, 2023. These prices will change. 1Estimated yields and costs are for yields with average management for three different soils representing low, average, and high productivity. The high productivity soils represent soils capable of producing corn and soybeans with yields about 20% higher than average soils. Low productivity soils represent soils capable of producing corn and soybeans with yields about 20% lower than the average soils. Both product prices and input prices may have significantly changed since these estimates were prepared. Table 1. Estimated per Acre Crop Budgets for Low, Average, and High Productivity Indiana Soils Crop Budgets for Three Yield Levels1 Low Productivity Soil Average Productivity Soil High Productivity Soil Contribution margin13 (Revenue - variable costs) per acre 2023 Purdue Crop Cost & Return Guide March 2023 Estimates Agricultural Land Base Rate - Reference Material - Page 068 ---PAGE BREAK--- Table 1 (Continued) 13Contribution margin is the return to labor and management, machinery ownership, land resources, and risk. 12Includes crop insurance, general farm insurance, and miscellaneous cost. The cost of crop insurance represents the premium projected for a Revenue Protection (RP) policy at the 80% coverage level. Crop insurance is included in budgets for corn and full-season soybeans, but is not included for wheat and double-crop soybeans. 11Interest is based on 9.0% annual rate for 9 months for seed, fertilizer, and chemicals, and for 6 months for half the machinery fuel and repairs, and all miscellaneous expenses. 8Fuel used to dry crop to a safe moisture level for storage. For double-crop soybeans, the drying charge represents the drying of wheat in order to allow an earlier planting of soybeans. 9Repairs are based on approximately 5-year-old machinery. For older machinery, per acre repairs and downtime cost will be higher. 7Includes insecticides and herbicides. For corn, rootworm insecticide is applied to the refuge acres. In some areas of Indiana, this may not be required. Cost projections include the application of fungicide to corn every other year. Fungicide applications are assumed to cost $28 to $32 per acre for material and application. Pesticide costs can vary widely based on herbicides selected, required rate of application, and product pricing. 10Hauling charge represents moving grain from field to storage. 6Corn seed prices assume a biotech variety with multiple traits. A 20%-refuge is planted with varieties that do not contain insect resistant traits, but do include herbicide tolerance. Seeding rates for corn are 27,000 seeds per acre on low productivity soils and 33,000 seeds per acre on average and high productivity soils. Soybean seed prices include Round-Up Ready® varieties. Rotation soybeans are drilled with a seeding rate of 169,000 seeds per acre with a 90% germination rate. Double-crop soybeans are drilled with a seeding rate of 195,000 seeds per acre. The seeding rate for wheat is two bushels per acre. 5Phosphate, potash, and lime applications are based on Tri-State Fertilizer Recommendations (Source: Purdue Extension Bulletin, AY-9-32, July 1995). Lime amounts represent the pounds of standard ag lime needed to neutralize the acidity from the nitrogen supplied from sources other than ammonium sulfate. Nitrogen application rate for corn is based on research from the Department of Agronomy, Purdue University. ammonia is used as the nitrogen source for corn. Urea is used as the nitrogen source for wheat. Pounds of N, P205, K20, and lime by crop and soil were as follows: continuous corn, 240-47-55-720, 240-59-63-720, 240-71-72-720; rotation corn, 200-50-57-600, 200-63-66-600, 200-75-75-600; rotation beans, 0-34-79-0, 0-42-93-0, 0-50-107-0; wheat, 58-38- 42-172, 84-47-48-251, 110-57-53-330; double crop beans, 0-23-61-0, 0-29-70-0, 0-34-80-0. Fertilizer prices per lb.: NH3 @ $0.73; urea @ $0.71; P205 @ $0.76; K20 @ $0.53; lime @ $19.95/ton spread on the field. For very poorly drained soils, consider increasing N rates by 5-10%. For well-drained soils, consider reducing N rates by 5-10%. All soil tests for phosphorus and potassium are assumed to be in the maintenance range, and the pH is in the recommended range. ID-166-W Purdue Extension 4Input prices for variable costs reflect expected prices for 2023. These prices will vary by location and time of the year. Users need to adjust these prices to reflect their own expectations and price situation. 2023 Purdue Crop Cost & Return Guide March 2023 Estimates Agricultural Land Base Rate - Reference Material - Page 069 ---PAGE BREAK--- Farm Acres 900 1000 2700 3000 900 1000 2700 3000 900 1000 2700 3000 Rotation1 c-c c-b c-c c-b c-c c-b c-c c-b c-c c-b c-c c-b Crop contribution margin2 $78 $206 $78 $206 $180 $316 $180 $316 $309 $438 $309 $438 Government payment3 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 Total contribution margin $78 $206 $78 $206 $180 $316 $180 $316 $309 $438 $309 $438 Annual overhead costs: Machinery ownership4 $147 $139 $98 $92 $147 $139 $98 $92 $147 $139 $98 $92 Family and hired labor5 $71 $64 $44 $40 $71 $64 $44 $40 $71 $64 $44 $40 Land6 $206 $206 $206 $206 $255 $255 $255 $255 $308 $308 $308 $308 Earnings or (losses) -$346 -$202 -$271 -$132 -$293 -$141 -$218 -$71 -$217 -$72 -$142 It is the policy of the Purdue University Cooperative Extension Service that all persons have equal opportunity and access to its educational programs, services, activities, and facilities without regard to race, religion, color, sex, age, national origin or ancestry, marital status, parental status, sexual orientation, disability or status as a veteran. Purdue University is an Affirmative Action institution. Date: 3/23/23 Prepared by: Michael R. Langemeier, Department of Agricultural Economics; Shaun Casteel, Dan Quinn, and Tony Vyn, Department of Agronomy; and Bill Johnson, Department of Botany and Plant Pathology, Purdue University. 2023 Purdue Crop Cost & Return Guide March 2023 Estimates ID-166-W Purdue Extension 6Based on 2022 cash rent per bushel of corn yield reported in the article entitled "Indiana Farmland Prices Grow at Record Pace in 2022," Purdue Agricultural Economics Report, August, 2022. The relatively strong crop prices in 2021 and 2022 will likely create upward pressure on cash rents, thus 2023 cash rents are assumed to be 5% higher than 2022 cash rents. 1Rotations are as follows: c-c = all of the farm acres in continuous corn; c-b = one-half of the farm acres in rotation corn and one-half in rotation soybeans. 2Crop's contribution margin is the per acre contribution margin from Table 1. 3It is assumed that the current farm bill will not provide ARC-CO or PLC payments for base acres in 2023. 4The same basic machinery set, which is timely for each rotation, is used for both the c-c and c-b rotation. The larger farm size requires larger, more expensive machinery. Corn production utilizes a chisel plow tillage system, and soybeans utilize no-till. Average annual replacement costs for the larger farm size were calculated using the Purdue Machinery Cost Calculator for a timely machinery set. Seven-year trading policy is assumed for combine and planter, 10-year policy for other field machinery. On livestock farms where fewer hours each day are available for crops, or on small farms, machinery costs and/or labor costs will be higher. On well-drained soils where more days are suitable for spring field work, machinery costs could be lower. A 10-year trading policy was assumed for all machinery on the smaller acreages. Machinery ownership costs are likely to vary widely from farm to farm. 5For the larger acreages, operator labor expense incoroporates information pertaining to total family living, net nonfarm income, and income and self-employment taxes obtained from FINBIN, Center for Farm Financial Management, University of Minnesota. The larger acreages also included hired labor. FINBIN data was used to compute hourly hired labor wages. For the smaller acreages, labor expense includes the same family living withdrawal and no hired labor. Labor costs are likely to vary widely from farm to farm. Table 2. Estimated per Acre Government Payments, Overhead Costs & Earnings for Low, Average, and High Productivity Indiana Soils Low Productivity Soil Average Productivity Soil High Productivity Soil Agricultural Land Base Rate - Reference Material - Page 070 ---PAGE BREAK--- Cont. Rot. Rot. DC Cont. Rot. Rot. DC Cont. Rot. Rot. DC Corn Corn Beans Wheat Beans Corn Corn Beans Wheat Beans Corn Corn Beans Wheat Beans Expected yield per acre2 152 162 49 68 34 179 190 58 80 41 208 221 67 93 47 Harvest price3 $4.50 $4.50 $11.55 $5.25 $11.55 $4.50 $4.50 $11.55 $5.25 $11.55 $4.50 $4.50 $11.55 $5.25 $11.55 Market revenue $684 $729 $566 $357 $393 $806 $855 $670 $420 $474 $936 $995 $774 $488 $543 Less variable costs4 Fertilizer5 $195 $177 $67 $95 $49 $205 $188 $78 $116 $58 $216 $200 $89 $138 $65 Seed6 102 102 74 44 86 124 124 74 44 86 124 124 74 44 86 Pesticides7 111 105 66 40 57 111 105 66 40 57 111 105 66 40 57 Dryer fuel8 44 35 N/A N/A 4 52 41 N/A N/A 5 60 48 N/A N/A 6 Machinery fuel @ $3.44 25 25 15 16 11 25 25 15 16 11 25 25 15 16 11 Machinery repairs9 45 45 40 40 25 45 45 40 40 25 45 45 40 40 25 Hauling10 16 17 5 7 4 19 20 6 8 4 22 23 7 10 5 Interest11 30 28 16 14 14 32 31 17 15 15 33 31 18 17 15 Insurance/misc.12 43 43 38 9 9 48 48 41 9 9 53 53 43 9 9 Total variable cost $611 $577 $321 $265 $259 $661 $627 $337 $288 $270 $689 $654 $352 $314 $279 $73 $152 $245 $92 $134 $145 $228 $333 $132 $204 $247 $341 $422 $174 $264 2These yields assume average weather conditions and timely plant/harvest dates, except soybean double-crop yield, which is based on a July 1 planting date. Rotation corn, rotation soybean, and wheat yields for average soils are based on the long-run trends in state average yields reported by the Indiana office of the National Agricultural Statistics Service. Continuous corn yields are 94% of rotation corn yields. Double-crop soybean yields are 70% of full-season soybean yields. Continuous corn yields assume a chisel plow tillage system. Double-crop soybean yields apply to central and southern Indiana. 3Harvest corn price is December 2024 CME Group futures price less $0.25 basis. Harvest soybean price is November 2024 CME Group futures price less $0.35 basis. Harvest wheat price is July 2024 CME Group futures price less $.35 basis. Harvest prices were based on opening prices on March 22, 2024. These prices will change. 1Estimated yields and costs are for yields with average management for three different soils representing low, average, and high productivity. The high productivity soils represent soils capable of producing corn and soybeans with yields about 20% higher than average soils. Low productivity soils represent soils capable of producing corn and soybeans with yields about 20% lower than the average soils. Both product prices and input prices may have significantly changed since these estimates were prepared. Table 1. Estimated per Acre Crop Budgets for Low, Average, and High Productivity Indiana Soils Crop Budgets for Three Yield Levels1 Low Productivity Soil Average Productivity Soil High Productivity Soil Contribution margin13 (Revenue - variable costs) per acre 2024 Purdue Crop Cost & Return Guide March 2024 Estimates Agricultural Land Base Rate - Reference Material - Page 071 ---PAGE BREAK--- Table 1 (Continued) 13Contribution margin is the return to labor and management, machinery ownership, land resources, and risk. 12Includes crop insurance, general farm insurance, and miscellaneous cost. The cost of crop insurance represents the premium projected for a Revenue Protection (RP) policy at the 80% coverage level. Crop insurance is included in budgets for corn and full-season soybeans, but is not included for wheat and double-crop soybeans. 11Interest is based on 9.0% annual rate for 9 months for seed, fertilizer, and chemicals, and for 6 months for half the machinery fuel and repairs, and all miscellaneous expenses. 8Fuel used to dry crop to a safe moisture level for storage. For double-crop soybeans, the drying charge represents the drying of wheat in order to allow an earlier planting of soybeans. 9Repairs are based on approximately 5-year-old machinery. For older machinery, per acre repairs and downtime cost will be higher. 7Includes insecticides and herbicides. For corn, rootworm insecticide is applied to the refuge acres. In some areas of Indiana, this may not be required. Cost projections include the application of fungicide to corn every other year. Fungicide applications are assumed to cost $28 to $32 per acre for material and application. Pesticide costs can vary widely based on herbicides selected, required rate of application, and product pricing. 10Hauling charge represents moving grain from field to storage. 6Corn seed prices assume a biotech variety with multiple traits. A 20%-refuge is planted with varieties that do not contain insect resistant traits, but do include herbicide tolerance. Seeding rates for corn are 27,000 seeds per acre on low productivity soils and 33,000 seeds per acre on average and high productivity soils. Soybean seed prices include Round-Up Ready® varieties. Rotation soybeans are drilled with a seeding rate of 169,000 seeds per acre with a 90% germination rate. Double-crop soybeans are drilled with a seeding rate of 195,000 seeds per acre. The seeding rate for wheat is two bushels per acre. 5Phosphate, potash, and lime applications are based on Tri-State Fertilizer Recommendations (Source: Purdue Extension Bulletin, AY-9-32, July 1995). Lime amounts represent the pounds of standard ag lime needed to neutralize the acidity from the nitrogen supplied from sources other than ammonium sulfate. Nitrogen application rate for corn is based on research from the Department of Agronomy, Purdue University. ammonia is used as the nitrogen source for corn. Urea is used as the nitrogen source for wheat. Pounds of N, P205, K20, and lime by crop and soil were as follows: continuous corn, 240-47-55-720, 240-59-63-720, 240-71-72-720; rotation corn, 200-50-57-600, 200-63-66-600, 200-75-75-600; rotation beans, 0-34-79-0, 0-42-93-0, 0-50-107-0; wheat, 58-38- 42-172, 84-47-48-251, 110-57-53-330; double crop beans, 0-23-61-0, 0-29-70-0, 0-34-80-0. Fertilizer prices per lb.: NH3 @ $0.49; urea @ $0.58; P205 @ $0.72; K20 @ $0.44; lime @ $30/ton spread on the field. For very poorly drained soils, consider increasing N rates by 5-10%. For well-drained soils, consider reducing N rates by 5-10%. All soil tests for phosphorus and potassium are assumed to be in the maintenance range, and the pH is in the recommended range. ID-166-W Purdue Extension 4Input prices for variable costs reflect expected prices for 2024. These prices will vary by location and time of the year. Users need to adjust these prices to reflect their own expectations and price situation. 2024 Purdue Crop Cost & Return Guide March 2024 Estimates Agricultural Land Base Rate - Reference Material - Page 072 ---PAGE BREAK--- Farm Acres 900 1000 2700 3000 900 1000 2700 3000 900 1000 2700 3000 Rotation1 c-c c-b c-c c-b c-c c-b c-c c-b c-c c-b c-c c-b Crop contribution margin2 $73 $199 $73 $199 $145 $281 $145 $281 $247 $382 $247 $382 Government payment3 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 Total contribution margin $73 $199 $73 $199 $145 $281 $145 $281 $247 $382 $247 $382 Annual overhead costs: Machinery ownership4 $147 $139 $98 $92 $147 $139 $98 $92 $147 $139 $98 $92 Family and hired labor5 $71 $64 $44 $40 $71 $64 $44 $40 $71 $64 $44 $40 Land6 $207 $207 $207 $207 $253 $253 $253 $253 $305 $305 $305 $305 Earnings or (losses) -$352 -$210 -$277 -$140 -$326 -$174 -$251 -$104 -$276 -$125 -$201 -$55 Average Productivity Soil High Productivity Soil It is the policy of the Purdue University Cooperative Extension Service that all persons have equal opportunity and access to its educational programs, services, activities, and facilities without regard to race, religion, color, sex, age, national origin or ancestry, marital status, parental status, sexual orientation, disability or status as a veteran. Purdue University is an Affirmative Action institution. Date: 3/22/24 Prepared by: Michael R. Langemeier, Department of Agricultural Economics; Shaun Casteel, Dan Quinn, and Tony Vyn, Department of Agronomy; and Bill Johnson, Department of Botany and Plant Pathology, Purdue University. 2024 Purdue Crop Cost & Return Guide March 2024 Estimates ID-166-W Purdue Extension 6Based on 2023 cash rent per bushel of corn yield reported in the article entitled "Indiana Farmland Prices Continue to Rise in 2023," Purdue Agricultural Economics Report, August, 2023. Cash rents are expected to remain stable through 2024. 1Rotations are as follows: c-c = all of the farm acres in continuous corn; c-b = one-half of the farm acres in rotation corn and one-half in rotation soybeans. 2Crop's contribution margin is the per acre contribution margin from Table 1. 3It is assumed that the current farm bill will not provide ARC-CO or PLC payments for base acres in 2024. 4The same basic machinery set, which is timely for each rotation, is used for both the c-c and c-b rotation. The larger farm size requires larger, more expensive machinery. Corn production utilizes a chisel plow tillage system, and soybeans utilize no-till. Average annual replacement costs for the larger farm size were calculated using the Purdue Machinery Cost Calculator for a timely machinery set. Seven-year trading policy is assumed for combine and planter, 10-year policy for other field machinery. On livestock farms where fewer hours each day are available for crops, or on small farms, machinery costs and/or labor costs will be higher. On well-drained soils where more days are suitable for spring field work, machinery costs could be lower. A 10-year trading policy was assumed for all machinery on the smaller acreages. Machinery ownership costs are likely to vary widely from farm to farm. 5For the larger acreages, operator labor expense incoroporates information pertaining to total family living, net nonfarm income, and income and self-employment taxes obtained from FINBIN, Center for Farm Financial Management, University of Minnesota. The larger acreages also included hired labor. FINBIN data was used to compute hourly hired labor wages. For the smaller acreages, labor expense includes the same family living withdrawal and no hired labor. Labor costs are likely to vary widely from farm to farm. Table 2. Estimated per Acre Government Payments, Overhead Costs & Earnings for Low, Average, and High Productivity Indiana Soils Low Productivity Soil Agricultural Land Base Rate - Reference Material - Page 073 ---PAGE BREAK--- Cont. Rot. Rot. DC Cont. Rot. Rot. DC Cont. Rot. Rot. DC Corn Corn Beans Wheat Beans Corn Corn Beans Wheat Beans Corn Corn Beans Wheat Beans Expected yield per acre2 156 166 51 71 36 183 195 60 84 42 213 227 70 98 49 Harvest price3 $4.20 $4.20 $9.90 $5.20 $9.90 $4.20 $4.20 $9.90 $5.20 $9.90 $4.20 $4.20 $9.90 $5.20 $9.90 Market revenue $655 $697 $505 $369 $356 $769 $819 $594 $437 $416 $895 $953 $693 $510 $485 Less variable costs4 Fertilizer5 $210 $192 $74 $108 $51 $221 $203 $85 $133 $58 $234 $216 $97 $159 $66 Seed6 102 102 74 44 86 124 124 74 44 86 124 124 74 44 86 Pesticides7 125 119 75 40 58 125 119 75 40 58 125 119 75 40 58 Dryer fuel8 47 37 N/A N/A 4 55 44 N/A N/A 5 64 51 N/A N/A 6 Machinery fuel @ $2.75 20 20 12 12 9 20 20 12 12 9 20 20 12 12 9 Machinery repairs9 45 45 40 40 25 45 45 40 40 25 45 45 40 40 25 Hauling10 16 17 5 7 4 19 20 6 9 4 22 24 7 10 5 Interest11 29 27 16 14 13 31 29 16 15 13 31 30 17 17 13 Insurance/misc.12 50 50 40 25 5 50 50 40 25 5 50 50 40 25 5 Total variable cost $644 $609 $336 $290 $255 $690 $654 $348 $318 $263 $715 $679 $362 $347 $273 $11 $88 $169 $79 $101 $79 $165 $246 $119 $153 $180 $274 $331 $163 $212 1Estimated yields and costs are for yields with average management for three different soils representing low, average, and high productivity. The high productivity soils represent soils capable of producing corn and soybeans with yields about 20% higher than average soils. Low productivity soils represent soils capable of producing corn and soybeans with yields about 20% lower than the average soils. Both product prices and input prices may have significantly changed since these estimates were prepared. Table 1. Estimated per Acre Crop Budgets for Low, Average, and High Productivity Indiana Soils Crop Budgets for Three Yield Levels1 Low Productivity Soil Average Productivity Soil High Productivity Soil Contribution margin13 (Revenue - variable costs) per acre 2These yields assume average weather conditions and timely plant/harvest dates, except soybean double-crop yield, which is based on a July 1 planting date. Rotation corn, rotation soybean, and wheat yields for average soils are based on the long-run trends in state average yields reported by the Indiana office of the National Agricultural Statistics Service. Continuous corn yields are 94% of rotation corn yields. Double-crop soybean yields are 70% of full-season soybean yields. Continuous corn yields assume a chisel plow tillage system. Double-crop soybean yields apply to central and southern Indiana. 3Harvest corn price is December 2025 CME Group futures price less $0.25 basis. Harvest soybean price is November 2025 CME Group futures price less $0.35 basis. Harvest wheat price is July 2025 CME Group futures price less $.35 basis. Harvest prices were based on opening prices on March 31, 2025. These prices will change. 2025 Purdue Crop Cost & Return Guide March 2025 Estimates Agricultural Land Base Rate - Reference Material - Page 074 ---PAGE BREAK--- Table 1 (Continued) 7Includes insecticides, herbicides, and fungicides. Pesticide costs can vary widely based on chemicals selected, required rate of application, and product pricing. 10Hauling charge represents moving grain from field to storage. 6Corn seed prices assume a biotech variety with multiple traits. A 20%-refuge is planted with varieties that do not contain insect resistant traits, but do include herbicide tolerance. Seeding rates for corn are 27,000 seeds per acre on low productivity soils and 33,000 seeds per acre on average and high productivity soils. Soybean seed prices include Round-Up Ready® varieties. Rotation soybeans are drilled with a seeding rate of 169,000 seeds per acre with a 90% germination rate. Double-crop soybeans are drilled with a seeding rate of 195,000 seeds per acre. The seeding rate for wheat is two bushels per acre. 5Phosphate, potash, and lime applications are based on Tri-State Fertilizer Recommendations (Source: Purdue Extension Bulletin, AY-9-32, July 1995). Nitrogen application rate for corn is based on research from the Department of Agronomy, Purdue University. ammonia is used as the nitrogen source for corn. Urea is used as the nitrogen source for wheat. Sulfur is applied on continuous corn, rotation corn, and rotation soybeans. Pounds of N, P205, K20, and lime by crop and soil were as follows: continuous corn, 240-58-62-720, 240-68-69-720, 240-79-78-720; rotation corn, 200-61-65-600, 200-72-73-600, 200-84-81-600; rotation beans, 0-41-91-0, 0-48-104-0, 0-56-118-0; wheat, 58-45-46-172, 84-53-51-251, 110-62-58-330; double crop beans, 0-29-70-0, 0-34-79- 0, 0-39-89-0. Fertilizer prices per lb.: NH3 @ $0.48; urea @ $0.61; P205 @ $0.72; K20 @ $0.39; sulfer @ $0.59; and lime @ $60/ton spread on the field. For very poorly drained soils, consider increasing N rates by 5-10%. For well-drained soils, consider reducing N rates by 5-10%. All soil tests for phosphorus and potassium are assumed to be in the maintenance range, and the pH is in the recommended range. ID-166-W Purdue Extension 4Input prices for variable costs reflect expected prices for 2025. These prices will vary by location and time of the year. Users need to adjust these prices to reflect their own expectations and price situation. 2025 Purdue Crop Cost & Return Guide March 2025 Estimates 13Contribution margin is the return to labor and management, machinery ownership, land resources, and risk. 12Includes crop insurance, general farm insurance, and miscellaneous cost. The cost of crop insurance represents the premium projected for a Revenue Protection (RP) policy at the 80% coverage level. Crop insurance is included in budgets for corn and full-season soybeans, but is not included for wheat and double-crop soybeans. 11Interest is based on 8.0% annual rate for 9 months for seed, fertilizer, and chemicals, and for 6 months for half the machinery fuel and repairs, and all miscellaneous expenses. 8Fuel used to dry crop to a safe moisture level for storage. For double-crop soybeans, the drying charge represents the drying of wheat in order to allow an earlier planting of soybeans. 9Repairs are based on approximately 5-year-old machinery. For older machinery, per acre repairs and downtime cost will be higher. Agricultural Land Base Rate - Reference Material - Page 075 ---PAGE BREAK--- Farm Acres 900 1000 2700 3000 900 1000 2700 3000 900 1000 2700 3000 Rotation1 c-c c-b c-c c-b c-c c-b c-c c-b c-c c-b c-c c-b Crop contribution margin2 $11 $129 $11 $129 $79 $206 $79 $206 $180 $303 $180 $303 Government payment3 $10 $10 $10 $10 $10 $10 $10 $10 $10 $10 $10 $10 Total contribution margin $21 $139 $21 $139 $89 $216 $89 $216 $190 $313 $190 $313 Annual overhead costs: Machinery ownership4 $155 $146 $103 $97 $155 $146 $103 $97 $155 $146 $103 $97 Family and hired labor5 $56 $50 $42 $38 $56 $50 $42 $38 $56 $50 $42 $38 Land6 $203 $203 $203 $203 $257 $257 $257 $257 $316 $316 $316 $316 Earnings or (losses) -$393 -$260 -$327 -$199 -$379 -$237 -$313 -$176 -$337 -$199 -$271 -$138 2025 Purdue Crop Cost & Return Guide March 2025 Estimates ID-166-W Purdue Extension 6Based on 2024 cash rent per bushel of corn yield reported in the article entitled "Farmland Prices Increase Despite Downward Pressure," Purdue Agricultural Economics Report, August, 2024. Cash rents are expected to remain stable through 2025. 1Rotations are as follows: c-c = all of the farm acres in continuous corn; c-b = one-half of the farm acres in rotation corn and one-half in rotation soybeans. 2Crop's contribution margin is the per acre contribution margin from Table 1. 3It is assumed that the current farm bill will provide ARC-CO or PLC payments of $10 per acre in 2025. 4The same basic machinery set, which is timely for each rotation, is used for both the c-c and c-b rotation. The larger farm size requires larger, more expensive machinery. Corn production utilizes a chisel plow tillage system, and soybeans utilize no-till. Average annual replacement costs for the larger farm size were calculated using the Purdue Machinery Cost Calculator for a timely machinery set. Seven-year trading policy is assumed for combine and planter, 10-year policy for other field machinery. On livestock farms where fewer hours each day are available for crops, or on small farms, machinery costs and/or labor costs will be higher. On well-drained soils where more days are suitable for spring field work, machinery costs could be lower. A 10-year trading policy was assumed for all machinery on the smaller acreages. Machinery ownership costs are likely to vary widely from farm to farm. 5For the larger acreages, operator labor expense incoroporates information pertaining to total family living, net nonfarm income, and income and self-employment taxes obtained from FINBIN, Center for Farm Financial Management, University of Minnesota. The larger acreages also included hired labor. FINBIN data was used to compute hourly hired labor wages. For the smaller acreages, labor expense includes the same family living withdrawal and no hired labor. Labor costs are likely to vary widely from farm to farm. Table 2. Estimated per Acre Government Payments, Overhead Costs & Earnings for Low, Average, and High Productivity Indiana Soils Low Productivity Soil Average Productivity Soil High Productivity Soil It is the policy of the Purdue University Cooperative Extension Service that all persons have equal opportunity and access to its educational programs, services, activities, and facilities without regard to race, religion, color, sex, age, national origin or ancestry, marital status, parental status, sexual orientation, disability or status as a veteran. Purdue University is an Affirmative Action institution. Date: 3/31/25 Prepared by: Michael R. Langemeier, Department of Agricultural Economics; Shaun Casteel and Dan Quinn, Department of Agronomy; and Bill Johnson, Department of Botany and Plant Pathology, Purdue University. Agricultural Land Base Rate - Reference Material - Page 076 ---PAGE BREAK--- Calculation of Average Government Payments per Acre January 1, 2026 2020 2021 2022 2023 2024 Line # 1 Total Government Payment 1,322,282,000 653,426,000 166,825,000 140,032,000 117,616,000 2 Less Milk Income Loss Payment 0 0 0 0 0 3 Less Dairy Margin Protection -2,648,000 -15,761,000 -1,645,000 -17,429,000 -978,000 4 Net Government Payment 1,319,634,000 637,665,000 165,180,000 122,603,000 116,638,000 5 Cropland Acres 12,909,673 12,909,673 12,909,673 12,531,737 12,531,737 6 Pymt Per Acre 102.22 49.39 12.80 9.78 9.31 Source: USDA-Indiana Ag Statistics Service 2020 2021 2022 2023 2024 1 Total Government Payment 2 Milk Income Loss Payment 3 Dairy Margin Protection Program 5 Cropland Acres P-81 P-81 P-81 P-79 P-79 Data for 2025 is not currently available. The Department has estimated the Government Payment per Acre for 2025 in the following way. Average Total Government Payment (2020-2024) 480,036,200 Average Milk Income Loss Payment (2020-2024) 0 Average Dairy Margin Protection Pymt (2020-2024) -7,692,200 Estimated Net Government Payment for 2025 472,344,000 Cropland Acres (P-79) 12,531,737 Estimated Payment Per Acre for 2025 37.69 Agricultural Land Base Rate - Reference Material - Page 077 ---PAGE BREAK--- INDIANA AGRICULTURAL STATISTICS 2023-2024 Agricultural Land Base Rate - Reference Material - Page 078 ---PAGE BREAK--- USDA, NASS, Indiana Field Office 89 COUNTY HIGHLIGHTS COUNTY HIGHLIGHTS The following pages of county statistics represent the results of a survey of over 15,000 farm operators following the 2023 harvest season. In addition to these data are selected items of interest from the U.S. Population Census, 2022 Census of Agriculture, and 2022 Cash Receipts information from the Bureau of Economic Analysis. The County Highlights section summarizes the importance of agriculture to each and every Indiana County while comparing the magnitude of importance across counties. Planted acreage and yield for both hay and popcorn are represented by three dashes because this category is not surveyed; in all other places the three dashes represent zero for that county. An asterisk signifies that the county has data for this item, but it cannot be disclosed for confidentiality purposes. The 2022 chicken data from Census includes only layers twenty weeks old and older. County level data from the 2022 Census was used for hay, popcorn, hogs, sheep, chickens and turkeys. Below is a list of comparable items at the state level. STATE DATA 2023 Census Population 6,862,199 2022 Cash Receipts $18,928,457,000 2022 Total Land Area (acres) 22,928,355 Crop Receipts $12,251,773,000 2022 Number of Farms 53,599 Livestock Receipts $6,676,684,000 2022 Land in Farms (acres) 14,602,240 2022 Average Size of Farm (acres) 272 2022 Other Income $940,991,000 Government Payments $142,215,000 2022 Value of Land & (avg/acre) $8,259 Imputed Income/Rent Received $798,776,000 2022 Cropland (acres) 12,531,737 2022 Harvested Cropland (acres) 11,955,458 2022 Total Income $19,869,448,000 2022 Pastureland, all types (acres) 632,796 Less: Production Expenses $13,901,074,000 2022 Woodland (acres) 1,038,481 Realized Net Income $5,968,374,000 2023 CROPS PLTD HARV YLD UNIT PROD LIVESTOCK NUMBER HEAD Corn 5,450,000 5,310,000 203.0 Bu 1,077,930,000 Jan 2024 All Cattle 790,000 Soybeans 5,500,000 5,480,000 61.0 Bu 334,280,000 Beef Cows 180,000 Wheat 405,000 335,000 92.0 Bu 30,820,000 Milk Cows 190,000 2022 All Hogs 4,372,121 2022 Alf. Hay 203,050 Ton 571,706 2022 All Sheep 79,185 2022 Oth. Hay 219,122 Ton 468,663 2022 Chickens 35,924,482 2022 Popcorn 83,038 Lbs 400,110,354 2022 Turkeys 8,486,069 Agricultural Land Base Rate - Reference Material - Page 079 ---PAGE BREAK--- INDIANA AGRICULTURAL STATISTICS 2022-2023 Agricultural Land Base Rate - Reference Material - Page 080 ---PAGE BREAK--- USDA, NASS, Indiana Field Office 89 COUNTY HIGHLIGHTS COUNTY HIGHLIGHTS The following pages of county statistics represent the results of a survey of over 15,000 farm operators following the 2022 harvest season. In addition to these data are selected items of interest from the U.S. Population Census, 2017 Census of Agriculture, and 2021 Cash Receipts information from the Bureau of Economic Analysis. The County Highlights section summarizes the importance of agriculture to each and every Indiana County while comparing the magnitude of importance across counties. Planted acreage for hay is represented by three dashes because this category is not estimated, planted acreage and yield for popcorn are represented by three dashes because these categories are not surveyed; in all other places the three dashes represent zero for that county. An asterisk signifies that the county has data for this item, but it cannot be disclosed for confidentiality purposes. The 2017 Chicken data from Census includes only layers twenty weeks old and older. Below is a list of comparable items at the state level. STATE DATA 2022 Census Population 6,833,037 2021 Cash Receipts $14,634,975,000 2017 Total Land Area (acres) 22,928,355 Crop Receipts $9,844,958,000 2017 Number of Farms 56,649 Livestock Receipts $4,790,017,000 2017 Land in Farms (acres) 14,969,996 2017 Average Size of Farm (acres) 264 2021 Other Income $1,231,381,000 Government Payments $643,600,000 2017 Value of Land & (avg/acre) $6,576 Imputed Income/Rent Received $587,781,000 2017 Cropland (acres) 12,909,673 2017 Harvested Cropland (acres) 12,345,774 2021 Total Income $15,866,356,000 2017 Pastureland, all types (acres) 716,911 Less: Production Expenses $10,937,297,000 2017 Woodland (acres) 1,034,784 Realized Net Income $4,929,059,000 2022 CROPS PLTD HARV YLD UNIT PROD LIVESTOCK NUMBER HEAD Corn 5,250,000 5,130,000 190.0 Bu 974,700,000 Jan 2023 All Cattle 790,000 Soybeans 5,850,000 5,830,000 57.5 Bu 335,225,000 Beef Cows 173,000 Wheat 290,000 240,000 81.0 Bu 19,440,000 Milk Cows 187,000 2017 All Hogs 4,004,388 Alfalfa Hay 260,000 3.50 Ton 910,000 2017 All Sheep 62,085 Other Hay 260,000 2.60 Ton 676,000 2017 Chickens 26,354,377 2017 Popcorn 79,222 Lbs 352,386,717 2017 Turkeys 7,350,556 Agricultural Land Base Rate - Reference Material - Page 081 ---PAGE BREAK--- SPRING, 2024 SUMMER, 2024 FALL, 2024 WINTER, 2024 SPRING, 2025 SUMMER, 2025 Planting 2024 Care for 2024 Harvest Prep equipment Planting 2025 Care for 2025 crops crops 2024 crops for storage crops crops Sell a portion of Sell remainder of Sell a portion of Sell a portion of Sell a portion of Sell remainder of the 2023 crops the 2023 crops the 2024 crops the 2024 crops the 2024 crops the 2024 crops Paying 1/1/23 Paying 1/1/23 Paying 1/1/24 Property Taxes Property Taxes Property Taxes Collect all or a Collect remainder Collect all or a portion of 2024 of 2024 Cash portion of 2025 Cash Rent Rent, if any due Cash Rent OPER. INCOME - 1/3 NOVEMBER GRAIN PRICES CASH RENT INCOME - CALENDAR YEAR OPERATING INCOME - 1/3 CALENDAR YEAR AVERAGE OF GRAIN PRICES OPERATING INCOME - 1/3 MARKET YEAR AVERAGE OF GRAIN PRICES AN OVERVIEW OF HOW THE CALENDAR IS USED IN CALCULATING THE AG LAND BASE RATE Agricultural Land Base Rate - Reference Material - Page 082 ---PAGE BREAK--- STATE OF INDIANA INDIANA GOVERNMENT CENTER NORTH 100 NORTH SENATE AVENUE N1058(B) INDIANAPOLIS, IN 46204 PHONE (317) 232-3777 FAX (317) 974-1629 DEPARTMENT OF LOCAL GOVERNMENT FINANCE Agricultural Land Base Rates For The Assessment Dates: January 1, 2022 – 2026 Data Year 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 Tax Year 26 Pay 27 $2,120 25 Pay 26 *$2,390/$2,120* 24 Pay 25 $2,280 23 Pay 24 $1,900 22 Pay 23 $1,500 The Agricultural Land Base Rate calculation was first established for the 2002 general reassessment and was developed in compliance with the St. John’s court case. The statute related to the base rate calculation can be found at Ind. Code § 6-1.1-4-4.5(e). The base rates shown above are made for the January 1 assessment dates of 2022 payable in 2023 through 2026 payable in 2027. They are based on a rolling six-year average of the market value in use. Once each of the market values is determined, the highest value for that six-year period is eliminated and the remaining five years are averaged. The statute then provides instructions to determine the capitalization rate used to calculate the final base rate. Indiana Code § 6-1.1-4-13(a) provides that “the land shall be assessed as agricultural land only when it is devoted to agricultural use”. This means that a parcel or a portion of the parcel is eligible for this base rate when it qualifies for it. Once the base rate is applied to land classified as agricultural land, the assessor then applies soil productivity factors and influence factors when appropriate. As illustrated in the following equation, the market value in use of agricultural land is calculated by dividing the net income of each acre by the appropriate capitalization rate. Market Value In Use = Net Income / Capitalization Rate The change in market value in use from year to year is based on changes in cash rent, yields, production costs, market prices, and interest rates for each of the six years involved. *Note: The base rate was calculated twice in 2025 Pay 2026, as the passage of Senate Enrolled Act 1-2025 required a change in the calculation for that year. Agricultural Land Base Rate - Reference Material - Page 083