Central Corn Belt agricultural land values rose 4% from a year ago, according to the third quarter survey of ag bankers conducted by the Federal Reserve Bank of Chicago. That gain is the largest year-over-year increase reported by the three quarterly surveys conducted in 2026 thus far.
In addition, values for “good” farmland in the bank district overall increased 2% in the third quarter compared to the second quarter, according to responses from 86 district agricultural bankers who completed the October 1 survey.
Indiana, Iowa and Wisconsin had year-over-year increases in farmland values. Illinois was the only state in the district reporting no annual change.
Illinois, Iowa and Wisconsin reported quarter gains versus the second quarter of 1%, 4% and 3, respectively. Indiana saw no change in farmland values versus the second quarter of 2026.
For the final quarter of 2026, 13% of survey respondents expect ag land values to rise; 14% expect them to decline -- 73% expect them to be stable. In line with these survey results, softer demand by agricultural producers for farmland will likely extend into 2027: 29% of respondents expect farmers to have weaker demand to purchase farmland this fall and winter compared with a year earlier, while 19% expect stronger demand.
In contrast, 27% of survey respondents anticipate nonfarm investors to have stronger demand to purchase farmland over the same period, while 18% anticipate weaker demand from this market segment. Furthermore, respondents project an increase in the volume of agricultural land transfers during this fall and winter relative to a year ago.
Agricultural credit conditions softened once again in the third quarter of 2026, according to the survey. In the July through September period of 2026, repayment rates for non-real-estate farm loans were lower than a year earlier. This was the 12th quarter in a row of lower rates. In addition, renewals and extensions of non-real estate agricultural loans were higher than a year earlier for the 13th consecutive quarter. The district still saw stronger demand for non-real-estate farm loans in the third quarter of 2026 relative to a year ago. This marked the 12th successive quarter of stronger demand.
Three “I” Corn Belt States and Wisconsin Note Rise in Values
