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Chicago Fed says 2021 ended with strong farmland values and credit

The Chicago Fed is reporting the largest rise in farmland values in the past decade.

Senior business economist David Oppedahl tells Brownfield values in 2021 were up 22 percent with Iowa seeing the largest gains.

“Iowa was a 30 percent increase from a year ago,” he says.  “Indiana was right at the average of 22 percent.”

Farmland values in Michigan were up 19 percent, Illinois 18 percent, and Wisconsin 12 percent year over year.

Oppedahl says rising net farm income helped to support the financial positions of farmers in the region.

“The increases in costs are a concern especially heading into 2022, but so far farmers have been able to manage those,” he explains.

Their survey found ag bankers expect farmland and capital purchases will be higher in the first quarter along with less demand for farm loans. Oppedahl expects producers to continue to have strong bottom lines in the year ahead despite potential interest hikes.