News

7th Federal Reserve land values slip

Agricultural land values in the Seventh Federal Reserve District slipped 1 percent in the second quarter. The Federal Reserve Bank of Chicago says the survey is from the response of 221 agricultural bankers in the District.

Good farmland values decreased 2 percent in Illinois and Wisconsin, Iowa was steady and Indiana’s value increased 2 percent in the April-through-June quarter. There was not enough response from Michigan bankers to get a sample.

Compared to a year ago the District’s land value is down 3 percent. Michigan land is up 6 percent, Indiana is 4 percent higher, Wisconsin is 2 percent lower, Illinois down 6 percent and good farmland in Iowa is down 7 percent from July 1 of 2014.

Just 1 percent of the survey respondents predicted farmland value would increase in the third quarter while 40 percent expect it to decline and 59 percent predict it will hold steady.

The District’s agricultural credit conditions were weaker than a year ago while demand for non-real estate farm loans was stronger. Repayment rates in the second quarter for non-real estate loans were weaker. Renewals and extensions of those loans were higher compared to a year ago. Availability of funds for lending by agricultural banks is about the same as a year ago.

 

Read the full report here: