Midwest Farmland Values Soar in First Quarter
USAgNet - 05/13/2022
The Chicago Fed's AgLetter reports that farmland values for the Seventh Federal Reserve District in the first quarter of 2022 were 23 percent higher than a year ago.
Values for “good” agricultural land in the first quarter of 2022 were 4 percent higher than in the fourth quarter of 2021.
Annual cash rental rates for farmland rose 11 percent in 2022, surpassing last year’s gain of 4 percent. With demand to purchase agricultural land up yet again this year, there was a larger amount of farmland for sale in the three- to six-month period ending with March 2022 than in the same period ending with March 2021.
In addition, the number of farms and the amount of acreage sold were up during the winter and early spring of 2022 compared with a year earlier. Given these upward trends, 48 percent of the responding bankers forecasted District farmland values to be higher during the second quarter of 2022, 51 percent forecasted them to be stable, and only 1 percent forecasted them to be lower.
Looking ahead to the second quarter of 2022, 48 percent of survey respondents anticipated farmland values to rise, 51 percent anticipated them to be stable, and 1 percent anticipated them to fall.
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