Farmland values increased 5 percent from the last quarter and 19 percent over a year ago in the Seventh Federal Reserve District. The Federal Reserve Bank of Chicago reports Iowa farmland jumped 27 percent in the last 12 months, Illinois increased 20 percent, Indiana farmland value is 15 percent above a year ago, Wisconsin is up 13 percent and Michigan increased 7 percent. Rental rates are 17 percent higher than a year ago in the district.
The bankers report demand to purchase farmland was stronger than a year ago and the number of farms sold, acreage sold and farmland for sale in the winter and early spring is sharply above a year ago. Almost two-thirds of the reporting bankers expect land values to be stable in the second quarter then increase again in the third quarter.
Agricultural credit conditions have improved, the index for availability of funds and the index for loan repayment rates reached their highest levels in survey history. The report states agricultural interest rates continue to decrease, establishing record lows.
Read the 7th District report here:
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