Farmland values declined by 6% during the first quarter of 2009, according to the survey of 227 ag bankers conducted by the Federal Reserve Bank of Chicago. That is the largest quarterly decline since 1985. The Chicago Fed bank serves northern Illinois, northern Indiana, all of Iowa, southern Wisconsin and the southern Michigan. The survey indicated land values rose by 2% for the year ending April 1, 2009.
The survey found a third of ag bankers expect land values to decline during the second quarter while almost two thirds anticipate stable land values. The survey indicated values slipped by 3% in Indiana, 4% in Illinois and 7% in Iowa and Wisconsin during the quarter. For the year, Iowa reported a 2% rise, Illinois and Indiana both listed a 4% gain and Wisconsin reported a 6% increase.
The survey also indicated cash rents increased 7% for 2009. State increases in cash rents were 8% for Illinois, 6% for Indiana, 8% for Iowa and 2% for Wisconsin, while rents in Michgan declined. Click here for more.
Land values in Texas stabilized during the first quarter, indicates the most recent survey by the Federal Reserve Bank of Dallas. The Dallas bank serves all of Texas plus northern Louisiana and southern New Mexico. The survey found the value of non-irrigated cropland increased by 1.3% during the quarter and by 6.6% for the year ending March 20, 2009. Irrigated cropland in Texas rose a slim 0.5% in the quarter and 3.4% for the year. Texas ranchland rose 1.3% in the quarter but declined 2.7% on an annual basis. Click here for the full report.
We will cover these reports in-depth in the next issue of LandOwner Newsletter. If interested in seeing a copy of LandOwner, just drop me an email at [email protected] or call me at 800-772-0023.