The value of good agricultural land in the central Corn Belt rose by 6% as of July 1, according to a survey of agricultural bankers conducted by the Federal Reserve Bank of Chicago. The Chicago Fed bank serves the northern two-thirds of Illinois and Indiana, all of Iowa, the lower peninsula of Michigan and southeastern Wisconsin. Wisconsin was the only state to report a lower farmland value compared to a year earlier, down 1%. Illinois, Indiana and Iowa listed gains of 5%, 4% and 8%, respectively, on an annual basis. On a quarterly basis, Illinois reported a 1% rise compared to the previous quarter and Wisconsin listed a 2% rise versus the prior quarter. Indiana and Iowa reported no change in value compared to the first quarter of this year.
David B. Oppedahl, business economist with the Federal Reserve Bank of Chicago who conducts the survey, wrote: "Location has been a major determinant for farmland values this year, even more significant than quality at times. There have been reports of prices boosted by bidding between farmers for desired parcels of farmland. However, higher quality land has tended to gain the most in value over the longer term."
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