CHICAGO (WTAQ) - The value of farmland keeps growing by leaps and bounds in the Midwest.
The Federal Reserve Bank of Chicago said agricultural land values jumped by 13 percent in the third quarter of this year – but it’s the smallest year to year increase since 2010.
Previous surveys showed that Wisconsin land values lagged behind the regional growth rates. And the same is true in the new report, as the Federal Reserve Bank reported an 8 percent jump in the state’s ag land values – 5 percent below the bank’s five-state totals.
But Wisconsin’s dairy farmers are among the most successful in getting loans.
The Badger State was the only one where non-real estate loans did not drop in the July through September period – and bankers expect the trend to continue for at least the rest of the year.
The Chicago Reserve Bank said Iowa had the largest increase in farmland values in its territory – 18 percent for the third quarter. Illinois was up 15 percent, Indiana 11 percent, Wisconsin 8, and Michigan 7.
Midwest farmland values grew by 5 percent from the second quarter of this year – and 36 percent of bankers surveyed believe the increases will continue in the final quarter.