The surge in the value of Midwestern cropland continues, according to recent reports from the Federal Reserve Banks of Chicago and Kansas City. The Chicago Fed bank says the value of "good" agricultural land rose 19% for the year ending March 31. That follows an annual increase of 20% reported through year-end 2011.
Leading the charge to higher values was Iowa at 27%, followed by Illinois at 20%, Indiana (15%), Wisconsin (13%) and Michigan (7%). The bank also indicates cash rental rates in 2012 climbed 12% from 2011, which is the second largest increase in the history of the bank survey.
The value of Central Plains cropland rose even more, reports the Kansas City Fed bank. It says the value of district dryland cropland rose 25% and irrigated cropland increased 30% on an annual basis through the end of March. The bank says this marks the first back-to-back years of 20%-plus increases in the history of the survey.
Leading the increase was Nebraska with a surge of 39%, followed by Kansas with a 24% rise in the value of dryland cropland. The mountain states of Colorado, New Mexico and Wyoming report a 17% rise, followed by a 13.5% gain in Missouri and a 9% gain in Oklahoma.
For additional perspective on land trends, check LandOwner Editor Mike Walsten's blog, "Your Precious Land."