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Second quarter land values spurred by development demand
A policy advisor with the Federal Reserve Bank of Chicago says farmland values surprisingly rose 3% in the second quarter of 2025 from a year earlier.
David Oppedahl tells Brownfield, “With the financial conditions looking a little weaker for agriculture, you would maybe anticipate some more weakening of farmland values as well.” He says, “But it’s not being seen in the data as we have it.”
He says demand from the real estate and energy sectors is helping keep land values resilient, especially in Indiana and Wisconsin. The 7th district also covers Illinois, Iowa, and Michigan.
“There just isn’t a lot of availability of land, so when things are being sold, especially better-quality ground, there is enough available funds out there looking for a home, and they continue to pursue good farmland,” he says.
Oppedahl says values for “good” agricultural land were up 1% from the first quarter of the year, and this was the first positive year-over-year change in real farmland values for the 7th District since the first quarter of 2024.
AUDIO: David Oppedahl – Federal Reserve District of Chicago
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