Chicago Fed says Q1 farmland values and credit score remained excessive
The Chicago Fed is reporting an increase in farmland values and farmer credit score circumstances within the first quarter.
Senior enterprise economist David Oppedahl tells Brownfield values for the primary three months of the yr had been up 23 % in comparison with final yr and the strongest in almost a decade.
“The rise in commodity costs has been an enormous a part of it,” he says. “It’s helped to shore up money circulate within the web farm revenue, however then additionally the continued low-interest charges.”
Oppedahl says values stay the strongest within the “I” states.
Farmland values in Iowa elevated 28 % in comparison with the primary quarter of 2021, whereas Indiana was up 23 %, adopted by Illinois, up 18 %, and Wisconsin up 13 %.
The survey additionally discovered the index of reimbursement charges for non-real-estate farm loans reached the very best stage in its historical past going again to 1970 for the primary quarter.
“It’s a interval the place the working capital has been plentiful and that’s helped to decrease the demand for a number of the working loans specifically,” he says.