According to the most recent Ag Economy Barometer from Purdue University, farmers expect the rise in farmland values to continue unabated over the next year as the Short-Run Farmland Value Expectations Index rose to a record high reading of 159, 11 points higher than a month earlier.

This reading stands in sharp contrast to a year ago when the short-run index bottomed out at a reading of 72. Producers were less optimistic, however, when queried about their longer-run (5-year) outlook for farmland values as the Long-Term Farmland Values Expectations Index declined 9 points in April to a reading of 148. The difference in producers’ short vs. long-term expectations could be an indication they are concerned that the rapid rise in farmland values currently underway might not be sustainable over the long run.