The value of “good” Central Corn Belt agricultural land rose 3% compared to a year earlier, according to the third quarter survey of ag bankers conducted by the Federal Reserve Bank of Chicago. It’s findings indicated the annual again equals the 3% annual gain reported in the bank’s second quarter survey. However, the survey indicates values remained unchanged compared to the second quarter of 2025.
Illinois, Indiana and Wisconsin had year-over-year increases in farmland values, while Iowa was the only district state reporting a year-over-year decrease of 1%. A quarterly increase in Illinois farmland values was offset by a quarterly decrease in Wisconsin farmland values in the third quarter of 2025, the bank notes. Indiana and Iowa agl land values saw no changes from the second quarter of 2025.
Looking ahead, the survey found 29% of survey respondents expect district ag land values to decline (8% expected them to rise and 63% expected them to be stable). “In line with these survey results,” the bank states, “softer demand by producers for farmland will likely extend into 2026: 44% of survey respondents expect farmers to have weaker demand to acquire farmland this fall and winter compared with a year earlier, while 10% expect stronger demand. In contrast, 28% of survey respondents anticipate nonfarm investors to have stronger demand to purchase farmland over the same period, though 20% anticipate weaker demand from this market segment.
“Moreover, responding bankers narrowly project an increase in the volume of farmland transfers during this fall and winter relative to a year ago. An Illinois banker suggests 2025 losses could lead to ‘liquidation of farmland to inject additional working capital into farming operations.’”
Agricultural credit conditions for the district softened further in the third quarter of 2025, the bank says. For the July through September period of 2025, repayment rates for non-real-estate farm loans were lower than a year earlier for the eighth quarter in a row. In addition, renewals and extensions of non-real estate agl loans were higher than a year earlier for the ninth straight quarter. The district still saw stronger demand for non-real-estate farm loans in the third quarter of 2025 relative to a year ago; this was the eighth consecutive quarter of stronger demand.
The survey found collateral requirements for farm loans in the third quarter of 2025 rose from the same quarter of last year; 21% of survey respondents report their banks required more collateral, while none reported that their banks required less.