Coming on the heels of a mild upturn in the third quarter of 2020, farmers and ranchers in the Upper Midwest saw dramatic improvement in the final three months to close out the year, according to the latest survey of agricultural lenders from the Federal Reserve Bank of Minneapolis. The bank serves Minnesota, Montana, North Dakota and northwestern Wisconsin.
Looking specifically at farmland values, the bank notes: “nonirrigated cropland values increased 3.6% on average across the district compared with a year earlier, while cash rents for that land increased by 6.2% over 2019. Irrigated farmland values rose 6.9% on average, while ranchland values rose 2.9%t. Lenders in North Dakota reported the largest increase in land values, with nonirrigated land up 8.5%, while Wisconsin, where the number of lenders responding was relatively small, logged a 6.6% decrease in those values.