Three Federal Reserve Banks that cover a large portion of the country say persistent weakness in farm income is reflecting in farmland values.
In the Corn Belt’s core, the Chicago district shows “good” farmland values in the fourth quarter of 2016 were down 1 percent from the third quarter. It’s also down 1 percent year-over-year, which is a smaller decrease than the previous two years.
In the St. Louis district, which covers the southern Midwest and South, quality farmland values during the fourth quarter of 2016 were 8 percent lower than they were during the fourth quarter of 2015. Ranch land or pastureland values were 3.5 percent lower than a year ago. Cash rents on ranchland are more than 11 percent lower.
In the Kansas City district, which covers the Great Plains to the Rockies, non-irrigated farmland values dropped 6 percent. Ranchland is off 7 percent from 2016. Cash rents for ranchland are down 12 percent. Depending on the region, some prices are holding.