Central Corn Belt Farmland Values Up 20%
Central Corn Belt farmland values continued their drive to higher levels during the third quarter of 2022, according to the Federal Reserve Bank of Chicago. In its latest survey of ag bankers, the bank notes the value of “good” farmland jumped 20% compared to a year earlier. In addition, values rose 4% versus the previous quarter.
The bank notes the third quarter’s annual gain was the fourth year-over-year increase in a row of at least 20% for district farmland values. Indiana led the way with an annual surge of 29%.
The other district states also saw double-digit year-over-year gains in farmland values. Iowa lists a 22% boost; Illinois posts a 20% rise and Wisconsin marks a 12% increase.
After being adjusted for inflation with the Personal Consumption Expenditures Price Index (PCEPI), district farmland values were still up 13% in the third quarter of 2022 relative to a year ago. “This was the fifth consecutive quarter with at least as large a year-over-year increase in real farmland values,” the bank states.
Sixty-eight percent of survey respondents anticipate district farmland values to stay the same in the final quarter of 2022, 25% anticipate a rise and 7% expect them to fall.
Also, the survey respondents who expect farmers and nonfarm investors to have stronger demand to acquire farmland this fall and winter compared with a year earlier outnumbered the respondents who expected these groups to have weaker demand. Respondents also anticipate a rise in the volume of farmland transfers during this fall and winter relative to a year ago.
