Farmland Values Up

Farmland values increased 10% in the third quarter of 2010 in the Seventh Federal Reserve District (Iowa, Michigan, the northern halves of Illinois and Indiana and the southeastern two-thirds of Wisconsin). The bank said the value of good farmland rose so quickly it prompted more farms to be put up for sale compared to recent quarters.

Farmland values in Iowa increased the most, up 13% compared to the same quarter last year, Indiana ag land values increased 11%, Michigan increased 10%, Illinois saw an 8% increase, while Wisconsin nudged 3% higher.

Nearly half of the bankers, 48%, expect land values to increase in the fourth quarter as well, while 49% expect prices to hold steady. More than a third predict increased demand for farmland among non-farm investors. ◆