Overall, year-over-year values in the Seventh Federal Reserve District enjoyed double-digit gains. But exceptions do exist, most notably in the Badger State. —The Editors

NATIONAL — TREND
As farmland values continue their steep ascent into the stratosphere, analysts are increasingly using the term “bubble.”

MIDWEST — FOCUS
According to the Chicago Fed, in 1Q 2013, farmland values jumped 4 percent in the Seventh District.
That’s right: 4 percent in 90 days. Year-over-year return? 15 percent.

In its Commodity Corner Newsletter, Ned Davis Research notes that the current 13-year run in farm prices has no precedent. “The historic move in Iowa soil has state insiders wondering if the party can continue.”

But don’t call any contrarian news “a downturn.” Economists at the Chicago Fed label the fall in values in Wisconsin as “signs of moderation.” They were more than offset by a whopping 24 percent rise in Michigan.

For a copy of the complete AgLetter, go to www.ChicagoFed.org.

P.S. On November 19, the Chicago Fed will host a conference to explore the risks faced by agricultural producers and lenders, as well as the risk-management tools available to them.