Chicago Fed Says Farmland Values Leveling off
The November Chicago Fed AgLetter indicates farmland values leveling off in third quarter and net farm income is down about 20% this year compared to 2021 and 2022.
Indiana land values have risen about 16% year-over-year, but it seems that part of this rise is due to 1031 exchanges of farmland near Indianapolis into other Indiana farmland. Plus, their rise in values happened later than Iowa and they had very good crops this year.
Iowa, on the other hand, had a drought for the eastern part of the state and the western was not a lot better plus it was dry there last year too.
The Fed is putting their annual Midwest Agriculture Conference on November 28 which is also available virtually. They will discuss foreign ownership of farmland plus the extra land being taken by solar farms, etc. It is free for those who want to attend virtually.
Interest rates have risen, but most farmers still appear to be in good shape. We will see how the next few quarters might change the outlook.