Agricultural bankers reported a 22% enhance in farmland values within the central Corn Belt throughout 2021, they usually count on values to proceed to rise within the opening months of this yr, stated the Chicago Federal Reserve Financial institution on Thursday. Iowa had the most important enhance, 30%, within the five-state Chicago Fed district.
“On the entire, the district skilled a really steep annual enhance of twenty-two% in its farmland values in 2021,” stated the Chicago Fed in its quarterly AgLetter. “In nominal phrases, 2011’s annual enhance was the final achieve as giant as 2021’s.” The rise in land values was aided by low rates of interest, authorities subsidies to farmers, robust commodity costs, and excessive corn and soybean yields.
Some 56% of bankers participating in a Chicago Fed survey stated they count on farmland values would rise within the first quarter of 2022; only one% predicted a decline. An Illinois banker cautioned, “Farmers have been in a position to understand good earnings in 2021; 2022 might be way more troublesome to take action with the rise within the prices of all inputs.”
Supply: Successful Farming