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Survey shows three percent decline in farmland values

Midwest farmland values in the third quarter of this year, on average, were three percent lower than a year ago, according to a new report from the Federal Reserve Bank of Chicago.

Seventh District business economist David Oppedahl says farmland values continue to hold up fairly well, despite the weak ag economy.

“Relative to where we might be, it seems like it’s a shallower path down that we’re on—compared to the 1980’s, when it was a very steep path,” Oppedahl says.

But the Chicago Fed’s quarterly survey of ag bankers also showed continued deterioration in ag loan repayment rates and pessimism for the months ahead.

“Bankers are expecting there to be more foreclosures and ‘for-sales’ in the winter this year than a year ago—so that’s not a positive sign, obviously,” says Oppedahl.

The Fed’s Seventh District includes Iowa, Michigan and parts of Wisconsin, Illinois and Indiana.

AUDIO: David Oppedahl