Farmland prices going up in much of Indiana

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Low interest rates and a limited supply are driving up prices for Indiana farmland.

A September study by Purdue University found prices were as much as 18 percent higher than in 2011, and some appraisers say they continue to go up.

Appraiser Barton Barker said eastern Indiana sales prices have ranged from $6,000 to as high as $11,000 an acre recently.

Purdue agricultural economist Craig Dobbins told the Connersville News-Examiner that demand for farmland is high despite the summer's drought. He said he expects more farm sales than usual this fall.

Tillable land is drawing the highest prices, and real estate agents say there are more buyers than sellers because farmers know the value of their land.

Dobbins attributed the increased values to Indiana's strong agricultural economy.

Farmland prices have also risen in counties surrounding Indianapolis, including Hamilton, IBJ reported in a story early this year.

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