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Record Setting Production Helps Keep Farmland Values Stable

  • The Seventh Federal Reserve District, which is made up of portions of Illinois Indiana, Iowa, Michigan, and Wisconsin, reported no change in farmland values during the fourth quarter.
  • The fall in expected farm income across the district created some concern over the credit condition in the upper Midwest.
  • Despite the fall in farm income and the increased credit requirements, bankers do not expect that a significantly larger group of farmers will not qualify for operating loans.

Farmland values in the upper Midwest remained stable through the fourth quarter as record breaking yields partially offset declining grain prices. The Seventh Federal Reserve District released their fourth quarter assessment of farmland values and credit conditions this week reporting that credit conditions were impacted by grain prices remaining low throughout the quarter. Most banks reported increasing loan demand and more restrictive credit availability than a year earlier.

The Seventh Federal Reserve District, which is made up of portions of Illinois Indiana, Iowa, Michigan, and Wisconsin, reported no change in farmland values during the fourth quarter. Increases in Illinois and Wisconsin farmland were offset by decreases in Indiana, Iowa, and Michigan farmland values. 

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