Midwest Farmland Values Continue to Surge

In spite of the drought last year the annual increase for “good” agricultural farm land was up 16 percent in the fourth quarter of 2012, according the Seventh Federal Reserve District . That is just a step down from 2007 and 2011. They are also predicting that land values will rise further in January to March of 2013.

Agricultural credit conditions have also improved in the fourth quarter of 2012 compared to the same time in 2011. This is due to non-real estate loan demand being lower, lower loan renewals, and extensions during the fourth quarter in 2012. Agricultural interest rates were at the lowest in that the district survey has seen. Banks are also reporting a loan to deposit ratio of 67.2 percent, this is the second lowest since 1996.

Further drought could change future land values.

If you would like to know what is happening with land prices in Cedar Rapids and surrounding areas or anything else, call me at 319-480-5262