The value of Midwestern Farmland continues to flatten, according to two recent surveys from Federal Reserve Banks. Central Corn Belt farmland rose just 1% during the third quarter versus the previous quarter, reports the Federal Reserve Bank of Chicago. The value of Central and Southern Plains dryland and irrigated cropland rose 0.9% and 2.8%, respectively, and ranchland increased 2% in the third quarter compared to the second quarter, reports the Federal Reserve Bank of Kansas City.
The Chicago Fed bank indicates the value of "good" agricultural farmland rose 14% on an annual basis for the period ending Sept. 30. The value of Indiana farmland surged 18% followed by a 17% rise in Michigan, a 16% rise in Illinois, a 14% gain in Wisconsin and a 9% increase in Iowa. On a quarter-versus-quarter basis, Michigan reports a 5% increase, Indiana and Wisconsin each report a 2% rise, Illinois lists a 1% increase and Iowa reports a 1% decrease. The survey also found more Corn Belt bankers leaning toward a decline in farmland values during the fourth quarter -- only 4% anticipate a rise in farmland values, 21% anticipate a decrease in values while 75% foresaw stable farmland values during the fourth quarter.
The Kansas City Fed bank says nonirrigated cropland values rose 19% compared to a year earlier for the period ending Sept. 30. Irrigated cropland rose 21.5% and ranchland values saw an annual gain of 15%. On a quarterly basis, the value of irrigated cropland rose 0.9% in the third quarter versus the second quarter while nonirrigated cropland increased 2.8% and ranchland rose 2%. Kansas reported a 22.5% annual increase in the value of nonirrigated cropland, Missouri rose 27%, Nebraska gained 13%, Oklahoma rose 12% and the mountain states of Colorado, northern New Mexico and Wyoming gained 21%. Kansas listed a 17% rise in the value of ranchland, Missouri listed a 13% gain, Nebraska rose 19.5%, Oklahoma rose 8% and the Mountain States increased 6%.
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