Farmland Values Continue to Slump

According to the latest AgLetter released by the Federal Reserve Bank of Chicago, farmland values for the third quarter of 2009 were 4% lower than a year ago in the Seventh District (which consists of Illinois, Iowa, Indiana, Wisconsin and Michigan.) However, there was an increase of 2% in the value of “good” agricultural land compared with the second quarter of 2009. These numbers are based on 225 replies by agricultural bankers in a Oct. 1 survey.

According to the Federal Reserve report, there will be no turnaround in the downward trend for district land values. More of the responding bankers expect farmland values to slide rather than gain during the fourth quarter of 2009, though 69% expect stable values. Twenty-seven percent anticipate decreases, and only 4% expect increased values.