Farmland in Corn Belt states rose 15% Q1 2013
By Amanda Brodhagen, Farms.com
Farmland prices in the U.S. Midwest rose 15% in the first quarter of 2012, the Federal Reserve Bank of Chicago said. The year-over-year increase in agriculture land of 15% nearly matched the annual gain from last year. The prices have risen despite weaker grain markets. Farmland values in the region have tripled in the past decade.
Michigan farmland was the hottest surging 24%, values in Iowa remained strong and rose by 20%, Illinois land followed closely behind with a 19% increase, and Indiana increased 15%. Additionally, prices of good farmland rose 4% in the same quarter, which compares to a 5% grain from a year ago. Prices fell in Wisconsin.
In a survey of bankers, 19% predict farmland will continue to increase into the second quarter, while 4% expect values to decrease, with the majority of bankers believing farmland values will remain stable. The survey also found that it is largely farmers who are buying farmland, rather than investors.