The Federal Reserve District (Chicago) has released its survey results of farmland values for the second quarter of 2016. Overall land values have decreased by 1% from the second quarter of 2015.The ranges of the different reported states are; Iowa ranged from -3 to -10%, Illinois +7 to -3%, and Michigan, Wisconsin, and Indiana all having insufficient data and possibly remaining static.
The June rally for soybean and corn prices was great, but farmers (and bankers) are looking at a record corn harvest and a near-record soybean harvest. It’s up in the air where the commodity prices will land, but it has a heavy cloud over it at this point.
Interest rates have lowered for real estate and operating loans with agricultural banks loan to deposit ratios indicate there is plenty of funds for more agricultural investing.