The value of "good" agricultural land jumped 12% in 2010, the second largest increase in 30 years. That's according to the most recent survey conducted by the Federal Reserve Bank of Chicago. The survey found the gains in land values in Illinois, Indiana and Iowa greatly out-paced the increases reported in Michigan and Wisconsin -- states hammered by the economic recession and severe financial pressure in the dairy industry.
On an annual basis, land values surged 18% in Iowa, 12% in Indiana, 11% in Illinois, 4% in Michigan and 7% in Wisconsin. The district saw values rise by 6% during the fourth quarter compared to the third quarter. Iowa again lead the charge with an 8% rise followed by Illinois at 7% and Indiana at 6%. Wisconsin reported a 2% increase during the fourth quarter versus the previous quarter while Michigan saw values slip by 1% quarter-on-quarter.