Midwest Land Values Move in Opposite Directions

August 29, 2017 05:14 AM
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Divergent trends in farmland values are evident across the heartland, according to the Federal Reserve Banks of Chicago, Kansas City and St. Louis.

The Chicago Fed reports good agricultural farmland marked a small annual increase through the second quarter of this year, while the St. Louis Fed says farmland values eased less than 1% for the same period. This is not a confirmation of a bottom, but it suggests market steadiness.

The Kansas City Fed reports land values continued to decline in the Central and Southern Plains.

Farmland values rose 1% across the Chicago Fed’s district through the first half of the year on both an annual and quarterly basis. This marks the first annual gain since mid-2014 and the second consecutive quarterly boost. But the gain was not spread evenly across the bank district. Illinois and Indiana, for example, report declines of 3% and 1%, respectively. Iowa, however, marked a 3% increase followed by a 1% boost in the Upper Midwest state of Wisconsin.

Farmland values slipped slightly in the southern Corn Belt and Upper Mississippi Delta, according to the St. Louis bank. The value of ranch and pastureland, meanwhile, rose 4.5%. But more than half of survey respondents expect farmland and pastureland values to ease going forward.

Crop and ranchland values declined across the Kansas City bank’s region through the second quarter. Irrigated and dryland cropland decreased 7% and 5%, respectively, while ranchland eased 4%.

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Spell Check

Omaha, NE
8/29/2017 04:53 PM

  One of the factors affecting the price of farmland in Nebraska is the high property taxes. Irrigated farmland taxes in NE are two to three times higher than the same yielding farmland in IA.

bad axe, MI
8/29/2017 07:06 AM

  The trouble with this high price land is the landlords want half the crop for rent and don't care if you can't make any money on it, because they know they can get it out of a farmer that has a FHA guarantee on there loans. Last week the Mexican President told Trump you went and printed all this money to create inflation in your economy to create jobs you priced yourself right out of the world market. Mexico said our people make $2 to $4 a hour in your plants in our country they can't buy your $30,000.00 car. This 70 trillion they printed in the last 35 years in this country is going to put ag out of business , you can't export commodities out of the USA at a profit anymore.

chilton, WI
8/29/2017 07:19 AM

  Had a 74 acre farm sell for $11,750 per acre the other day. Land is not going down here.


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