Ag bankers in the Midwest reported the largest year-over-year increase in agricultural land values, 2 percent, since 2014, said the Chicago Federal Reserve on Thursday. The Kansas City Federal Reserve said land values rose by 1 to 3 percent in the Plains, with the value of ranchland and non-irrigated cropland rising the most.
“Indiana and Wisconsin led the way with year-over-year jumps in their farmland values of 6 percent and 3 percent, respectively; the growth in farmland values in Illinois (2 percent) and Iowa (1 percent) was more modest,” said the Chicago Fed in its quarterly AgLetter. The regional Fed covers Iowa, southern Wisconsin, the northern two-thirds of Illinois and Indiana, and Michigan except for the Upper Peninsula.
The Kansas City Fed said the rise in land values was consistent across much of its seven-state district. “On average, across all types of farmland, values increased from a year ago in all states except Nebraska,” where the value of ranchland declined by 4 percent, said the quarterly Ag Credit Survey. “The average increase was over 5 percent in Oklahoma and western Missouri and less than 5 percent in the Mountain States and Kansas.”