District farmland values continued to trend upward this
summer, according to the Federal Reserve Bank of Chicago’s
latest survey of agricultural banks. The 375 respondents
indicated that, on average, the value of good farmland
rose 1.6 percent during the third quarter and 7 percent
during the 12 months ending in September. The third
quarter rise was slightly larger than that of the previous
quarter and about comparable to the average quarterly
rate of increase experienced over the last three years.
However, the rate of increase this summer varied considerably
among the five states comprising the Seventh
Federal Reserve District. The bankers from Iowa reported
the largest increase, nearly 3 percent, while those from
the District portion of Wisconsin reported that farmland
values were essentially unchanged in the third quarter.
Elsewhere, the third quarter rise approximated 1 percent
in Indiana and Michigan and 2 percent in Illinois. For
the 12 months ending with September, the gains ranged
from 6 percent in Illinois to 8 percent in Indiana.