Economic and Marketing Information for Indiana Farmers (May 26, 1952) |
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Economic and Marketing INFORMATION FOR INDIANA FARMERS Lafayette, Indiana May 26, 1952 Prepared by members of the Agricultural Staff of Purdue University How Much Is Your farm Worth? by HOWARD G. DIESSUN, Agricultural Economics INDIANA FARM Real Es- I tate prices are expected to increase moderately in the year or two ahead. Rapid rises, such as occurred during the past two years, are not expected to continue unless prospects for war increase materially. The Present Situation It is estimated that Indiana farm land prices increased 10 percent during the year ending March, 1952. Added to a 20 percent rise the previous year, most of which came after the outbreak of the Korean War, Indiana land prices have increased approximately 30 percent in two years. The rate of increase averaged nearly 1 percent per month during the past year—even during the recent months of declining commodity prices. The estimated index of farm land values presently exceeds the World War I peak by more than 40 percent. Price rises are greatest for small acreages in the better land areas. The change in average value of farm real estate from 1940 to 1950 is shown by type-of-farming areas lr> the map on page 2. Both dollar and percentage increases were greatest in Central and Northern Indiana during this decade. State farm real estate values increased 117 percent between 1940 and 1950, •According to Census enumerations. At the present t'roe, land prices are about triple 1940 prices. Transfers Remain Low Sales of Indiana farms have not increased despite rapidly rising values. During the past four years, voluntary sales have averaged 40 farms per 1,000 each year. Total transfers, which include inheritance, gifts, estates and forced sales as well as voluntary sales, have averaged 65 farms per 1,000 per year. There has been little variation from this figure in any year since March, 1948. Annual voluntary sales are currently one-third less than the postwar peak reached in 1946. Even these average estimates can be misleading, however. Voluntary transfers are much fewer for farms exceeding 120 acres than for smaller farms or tracts of real estate. The U.S.D.A. estimates that 28 percent of all land purchases were for farm enlargement purposes in the Eastern Cornbelt States during the year ending, March 1, 1951. $400 Land Not Typical Much publicity is given to land selling above $400 per acre. U.S.D.A. statistics for Indiana in the year ending March, 1950, and for the Eastern Cornbelt for the two years ending March, 1951 indicate such cases remain the exception (see Table 1). Probably about 10 and certainly not more than 15 percent of Indiana farm sales during the past year exceeded $400 per acre. In most instances, these were either small farms with good buildings and soils, or small tracts with exceptionally good soils that were added to existing farms. In the year ending March, 1951, the average price of land sales per acre by quality of land in the Eastern Cornbelt was as follows: "good" land, $293; "average" land, $198; "poor" land, $126. During the year ending March, 1951, about 62 percent of the transfers involved credit. Farm mortgages averaged $12,850 per tract and $85 per acre on the
Object Description
Title | Economic and Marketing Information for Indiana Farmers (May 26, 1952) |
Purdue Identification Number | UA14-13-econ195205 |
Date of Original | 1952 |
Publisher | Purdue University. Agricultural Extension Service |
Subjects (LCSH) |
Farm produce--Indiana--Marketing Agriculture--Economic aspects--Indiana |
Genre | Periodical |
Collection Title | Extension Economic & Marketing Information (Purdue University. Agricultural Extension) |
Rights | Copyright Purdue University. All rights reserved. |
Coverage | United States - Indiana |
Type | text |
Format | JP2 |
Language | eng |
Repository | Purdue University Libraries |
Date Digitized | 02/27/2015 |
Digitization Specifications | Original scanned at 400 ppi on a BookEye 3 scanner using Opus software. Display images generated in Contentdm as JP2000s; file format for archival copy is uncompressed TIF format. |
URI | UA14-13-econ195205.tif |
Description
Title | Economic and Marketing Information for Indiana Farmers (May 26, 1952) |
Purdue Identification Number | UA14-13-econ195205 |
Transcript | Economic and Marketing INFORMATION FOR INDIANA FARMERS Lafayette, Indiana May 26, 1952 Prepared by members of the Agricultural Staff of Purdue University How Much Is Your farm Worth? by HOWARD G. DIESSUN, Agricultural Economics INDIANA FARM Real Es- I tate prices are expected to increase moderately in the year or two ahead. Rapid rises, such as occurred during the past two years, are not expected to continue unless prospects for war increase materially. The Present Situation It is estimated that Indiana farm land prices increased 10 percent during the year ending March, 1952. Added to a 20 percent rise the previous year, most of which came after the outbreak of the Korean War, Indiana land prices have increased approximately 30 percent in two years. The rate of increase averaged nearly 1 percent per month during the past year—even during the recent months of declining commodity prices. The estimated index of farm land values presently exceeds the World War I peak by more than 40 percent. Price rises are greatest for small acreages in the better land areas. The change in average value of farm real estate from 1940 to 1950 is shown by type-of-farming areas lr> the map on page 2. Both dollar and percentage increases were greatest in Central and Northern Indiana during this decade. State farm real estate values increased 117 percent between 1940 and 1950, •According to Census enumerations. At the present t'roe, land prices are about triple 1940 prices. Transfers Remain Low Sales of Indiana farms have not increased despite rapidly rising values. During the past four years, voluntary sales have averaged 40 farms per 1,000 each year. Total transfers, which include inheritance, gifts, estates and forced sales as well as voluntary sales, have averaged 65 farms per 1,000 per year. There has been little variation from this figure in any year since March, 1948. Annual voluntary sales are currently one-third less than the postwar peak reached in 1946. Even these average estimates can be misleading, however. Voluntary transfers are much fewer for farms exceeding 120 acres than for smaller farms or tracts of real estate. The U.S.D.A. estimates that 28 percent of all land purchases were for farm enlargement purposes in the Eastern Cornbelt States during the year ending, March 1, 1951. $400 Land Not Typical Much publicity is given to land selling above $400 per acre. U.S.D.A. statistics for Indiana in the year ending March, 1950, and for the Eastern Cornbelt for the two years ending March, 1951 indicate such cases remain the exception (see Table 1). Probably about 10 and certainly not more than 15 percent of Indiana farm sales during the past year exceeded $400 per acre. In most instances, these were either small farms with good buildings and soils, or small tracts with exceptionally good soils that were added to existing farms. In the year ending March, 1951, the average price of land sales per acre by quality of land in the Eastern Cornbelt was as follows: "good" land, $293; "average" land, $198; "poor" land, $126. During the year ending March, 1951, about 62 percent of the transfers involved credit. Farm mortgages averaged $12,850 per tract and $85 per acre on the |
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