Bankers in the Seventh Federal Reserve District forecast continued demand for productive farmland as investors and farmers snap up every available parcel.
NATIONAL — TREND
Neither Election Day uncertainties nor drought conditions slowed the nonstop rise in agricultural land values as ultra-low interest rates continue to spur investors to turn to hard assets.
MIDWEST — FOCUS
Iowa’s farmland values continued to lead the Seventh District, with a year-over-year increase of 18 percent for the third quarter of 2012.
The year-over-year gain for the Seventh District agricultural land values was 13 percent – the smallest increase since 2010.
According to the survey responses, the drought was predicted to more adversely affect the net farm earnings of livestock farm operators than those of crop farmers.
According to the 223 responses provided for the October 1 survey, the Seventh District’s agricultural land values were expected to continue rising in the fourth quarter of 2012.
For a copy of the complete AgLetter, go to www.ChicagoFed.org.