Central Corn Belt Farmland Values Soar 18%

Federal Reserve Bank of Chicago notes strong farm incomes have translated into rising farmland values.
Federal Reserve Bank of Chicago notes strong farm incomes have translated into rising farmland values.
(Farm Journal)

The value of “good” agricultural land across the three “I” states soared 18% on an annual basis through the third quarter, according to the Federal Reserve Bank of Chicago. Low interest rates, government support and higher than normal farm incomes all contributed to the gains.

This was the largest year-over-year increase in the district’s farmland values in nine and a half years, the bank states. Iowa led the way with an annual jump  of 28%; other states also saw double-digit year-over-year growth in farmland values. After being adjusted for inflation with the Personal Consumption Expenditures Price Index (PCEPI), District farmland values were still up 13%.

In nominal terms, land values in the third quarter of 2021 were 6% higher than in the second quarter, the bank states.

Sixty-eight percent of survey respondents anticipate district farmland values to rise in the final quarter of 2021, and the rest anticipate them to be stable. In addition, a large majority of respondents expect both farmers and nonfarm investors to have stronger rather than weaker demand to acquire farmland this fall and winter compared with a year earlier. Also, respondents overwhelmingly anticipate a rise in the volume of farmland transfers during this fall and winter relative to a year ago, the bank comments.

table shows changes in average farmland values
Federal Reserve Bank of Chicago

                          Annual Percentage Change in Farmland Values

Percent change in farmland values over time
Federal Reserve Bank of Chicago



Latest News

New WOTUS Rule Effective Monday, But Supreme Court Ruling Ahead is Key Event

FOMC rate decision | Yellen | Banking crises | New farm bill | Ukraine grain export pact

Rural Mainstreet Economy Turns Negative

Monthly Creighton survey of bankers

After the Bell | March 17, 2023

After the Bell | March 17, 2023

Stabenow Makes Clear: Cut SNAP, Rest of Farm Bill Will Be Pared Back, Too

Xi will visit Moscow next week for first time since Russia's invasion of Ukraine

Ahead of the Open | March 17, 2023

Grain and soy futures are expected to open higher. There was another daily corn sale to China.