Farmland values across the central Corn Belt rose 2% in the third quarter of 2020 from a year ago, according to the quarterly survey of agriculture bankers conducted by the Federal Reserve Bank of Chicago. The bank notes the lift in values came from support from lower interest rates, additional government payments and some rising agricultural prices. However, values for “good” agricultural land in the district overall were the same in the third quarter of 2020 as in the second quarter.
“The district had not seen this large of a year-over-year increase in its farmland values during the past six years,” notes David Oppedahl, senior business economist, who conducts the survey.
Indiana and Wisconsin led the way with year-over-year jumps in values of 6% and 3%, respectively; the 2% rise in farmland values in Illinois and 1% boost in Iowa were more modest. On the whole, the district’s agricultural land values were unchanged from the second quarter of 2020, although Illinois’s experienced a 2 percent quarterly decrease.
The vast majority of survey respondents (82%) anticipate district farmland values will be stable during the fourth quarter of 2020. Yet, notably, more of them anticipated an increase in district farmland values in the final quarter of this year than anticipated a decrease.