American farmland values skyrocket

Nov 18, 2021

American farmland real estate values jump by 18 percent over numbers from 2020 Q3 in a five-state region.

In the Seventh Federal Reserve District that includes all of Iowa and much of Wisconsin, Michigan, Illinois and Indiana, the Chicago Fed—aka the Federal Reserve Bank of Chicago that serves the District—it is believed that the large increase in values is related to the higher crop prices achieved this year.

The 18 percent increase is the largest such jump in nearly 10 years, noted the Chicago Fed, and added that the valuation increase was aided by high incomes and low interest rates, and corn and soybean futures hitting multiyear peaks thanks to bad weather affecting yield.

On the downside, the high value of farmland adds to inflation concerns as raw material prices rise along with transportation rates—all bad news for consumers.

Photo by Tim Mossholder on Unsplash

Video: Fendt Testimonial | Fendt 726 Vario Gen7 | Peter Watson Jones Ltd.

What happens when a farm buys its first Fendt? For Peter Watson Jones Ltd, the Fendt 726 Vario Gen7 has exceeded expectations from day one. For Jack, Farm Manager at Peter Watson Jones Ltd in North Shropshire, UK, the Fendt 726 Vario Gen7 wasn't just another tractor purchase. It was the farm's first experience with the Fendt brand.

Operating across a 1,200-acre arable farm alongside a 250,000-head broiler enterprise, the business has evolved significantly over the last decade, moving to a straight arable system with fewer staff and machines. Since arriving on the farm, the Fendt 726 Vario has established itself as the main drilling and cultivations tractor, earning its place through performance, versatility and efficiency. Whether it's handling large-scale cultivations or working with a new 4.5m strip-till drill, the tractor continues to impress.

Jack highlights its excellent manoeuvrability, operator comfort and ability to deliver strong pulling power at low engine speeds. The result? Outstanding fuel efficiency without compromising performance. Reliability has also been a key factor, with dependable backup from the team at TR Machinery helping to keep the tractor working when it matters most.

?? Watch as Jack shares why the Fendt 726 Vario Gen7, the farm's first Fendt, has made such a strong impression and become an integral part of their operation.