The value of Central Corn Belt farmland rose 5% in 2013, according to a survey of ag bankers conducted by the Federal Reserve Bank of Chicago. While an increase, the "growth in farmland values appeared to be slowing," states David Oppedahl, senior business economist with the bank who conducted the survey.
The increase is the smallest annual gain since 2009 and the second-lowest gain of the past decade. Strong increases were reported in Illinois and Indiana, which show gains of 10% and 14%, respectively. Michigan reports a 6% increase and Wisconsin marks a 2% rise. Iowa, however, reports a decline of 2% in the value of farmland.
The value of "good" agricultural farmland rose 3% during the fourth quarter compared to the previous quarter. Indiana led the gains on a quarterly basis with a 6% rise. Illinois followed with a 3% boost. Iowa and Wisconsin both noted a 1% decline for the fourth quarter compared to the third quarter.
Looking ahead, the bank says a majority of ag bankers expect farmland values to be stable in the first quarter of 2014, but the remainder of those surveyed said they looked for farmland values to decrease.
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