While your farmland may look about the same as it did last year, it’s now worth a whole lot more. Around 25% more if you live in the Corn Belt states.
This week, the Federal Reserve Banks of Chicago and Kansas City, district 7 and 10, released its third quarter farmland data. Both districts saw some of the strongest farmland value gains since the late 1970s.
The Chicago Fed bank, which serves the northern two-thirds of Illinois, Indiana, Iowa, the lower Peninsula of Michigan and southeastern Wisconsin, reports favorable credit conditions and interest rates for agricultural producers boosted values.
The Chicago Fed states that further strengthening of agricultural credit conditions during the fall and winter was anticipated by their survey respondents.
The Kansas City Fed bank, which serves Kansas, northwest Missouri, Nebraska, Oklahoma and the Mountain States of Colorado, Wyoming and northern New Mexico, also cited a positive financial environment. District farm incomes were higher than year-ago levels, despite the extensive drought seen in much of the area.
Other key value drivers, the Fed notes, were strong competition for the limited of farms for sale in the growing season and robust livestock demand.
Here’s an overview of the farmland value gains by state. (Percent change from previous year).
The Federal Reserve System
District 7 (red) and District 10 (purple) saw record farmland value increases this year.