Midwest Farm Economy Stays Strong in Q3 2022

The Seventh Federal District’s farmland values rose 20 percent in Q3 2022. Even when adjusted for inflation, values were up 13 percent, continuing a year-over-year gain for the fourth year in a row. Indiana led the district in Q3 at 29 percent. Despite planting delays in the spring and threat of drought in the summer, production exceeded expectations. The prices of corn and soybeans were slightly lower than in August but still significantly higher than a year ago. Credit conditions improved, but inflation and higher interest rates affected net incomes. After being in negative territory for the four previous quarters, the average interest rate on farm operating loans was slightly above zero. Sixty-eight percent of survey respondents predict that farmland values will stay the same going into Q4. Most anticipate a rise in the volume of farmland transfers. Read more HERE.