Mike Walsten

Land values roared 22% to 30% across South Dakota in 2007, according to the most recent quarterly survey of agricultural bankers in the state. That eye-blinking surge leads the pack of breath-taking gains reported across the upper Midwest for 2007 by the Federal Reserve Banks of Minneapolis and Chicago. The Fed banks survey ag bankers each quarter, asking them a host of questions concerning ag loans, credit conditions and land values. The most recent survey covers the period ending December 31, 2007.

Values surged 16% across northern Illinois, northern Indiana, Iowa, Michigan and Wisconsin, the region served by the Chicago Fed bank. Lenders responding to the survey noted values rose by 6% in the fourth quarter alone. Leading the Chicago district was Iowa, with bankers there saying values jumped 18% in 2007 and 6% during the fourth quarter. Indiana bankers said values rose 16% while Illinois and Michigan bankers reported a 15% gain in 2007. Wisconsin posted the smallest increase at 11%.

Values exploded 16% to 20% across Minnesota, Montana, North Dakota, South Dakota and northwesten Wisconsin, the region served by the Minneapolis Fed bank. The bank says values rose the greatest in South Dakota (up 22% for dryland and 30% for ranchland) and the slowest in Montana, up 5% and 3% respectively.

Send me an email and tell me about what's happening to land values or cash rents in your area. I'll share responses in a later commentary and in LandOwner newsletter.

I will cover both bank's survey in much more detail in my newsletter, LandOwner. If interested in seeing a copy of LandOwner just send an email or call 800-772-0023. I'd be happy to email a copy to you. Better yet, subscribe and save $20 off the annual subscription price of $119. Just call 800-772-0023 and mention you saw the offer in this column.