U.S. Corn Belt Farmland Values Jump an Avg 22 Pct; Iowa Leads at 30 Pct
Agricultural land values in the U.S. Corn Belt have jumped by 22 percent between January 2021-January 2022, according to the February report from the Seventh Federal Reserve District, which includes Iowa, Illinois, Michigan, Indiana, and Wisconsin.
Farmland value shifts for 2021: Iowa: +30 percent
Indiana: +22 percent
Michigan: +19 percent
Illinois: +18 percent
Wisconsin: +12 percent
This increase in value is the largest seen since 2013, according to David Oppedahl, senior business economist, Federal Reserve Bank in Chicago. Locals on the ground, such as farm dealer Jeffrey Obrecht, agree, saying that prices for good-to-excellent farmland have jumped 25-30 percent this past year. Obrecht stated that in a normal year he sells 35 farms, but last year he sold 76, and has another 15 auctions booked between now and April.
Furthermore, more than half of the 147 agricultural bankers who responded to the survey stated they have expectations that values will continue to climb in Q1 2022.
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