Fed Surveys Reflect Flattening in Midwestern Farmland Values
Nov 18, 2013
The value of Midwestern Farmland continues to flatten, according to two recent surveys from Federal Reserve Banks. Central Corn Belt farmland rose just 1% during the third quarter versus the previous quarter, reports the Federal Reserve Bank of Chicago. The value of Central and Southern Plains dryland and irrigated cropland rose 0.9% and 2.8%, respectively, and ranchland increased 2% in the third quarter compared to the second quarter, reports the Federal Reserve Bank of Kansas City.
The Chicago Fed bank indicates the value of "good" agricultural farmland rose 14% on an annual basis for the period ending Sept. 30. The value of Indiana farmland surged 18% followed by a 17% rise in Michigan, a 16% rise in Illinois, a 14% gain in Wisconsin and a 9% increase in Iowa. On a quarter-versus-quarter basis, Michigan reports a 5% increase, Indiana and Wisconsin each report a 2% rise, Illinois lists a 1% increase and Iowa reports a 1% decrease. The survey also found more Corn Belt bankers leaning toward a decline in farmland values during the fourth quarter -- only 4% anticipate a rise in farmland values, 21% anticipate a decrease in values while 75% foresaw stable farmland values during the fourth quarter.
The Kansas City Fed bank says nonirrigated cropland values rose 19% compared to a year earlier for the period ending Sept. 30. Irrigated cropland rose 21.5% and ranchland values saw an annual gain of 15%. On a quarterly basis, the value of irrigated cropland rose 0.9% in the third quarter versus the second quarter while nonirrigated cropland increased 2.8% and ranchland rose 2%. Kansas reported a 22.5% annual increase in the value of nonirrigated cropland, Missouri rose 27%, Nebraska gained 13%, Oklahoma rose 12% and the mountain states of Colorado, northern New Mexico and Wyoming gained 21%. Kansas listed a 17% rise in the value of ranchland, Missouri listed a 13% gain, Nebraska rose 19.5%, Oklahoma rose 8% and the Mountain States increased 6%.
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