Archive for April, 2008

Land Values Jump 11% to 22% Across Upper Midwest

Wednesday, April 2nd, 2008

March 4, 2008 by Mike Walsten,

Land values roared 22% to 30% across South Dakota in 2007, according to the most recent quarterly survey of agricultural bankers in the state. That eye-blinking surge leads the pack of breath-taking gains reported across the upper Midwest for 2007 by the Federal Reserve Banks of Minneapolis and Chicago. The Fed banks survey ag bankers each quarter, asking them a host of questions concerning ag loans, credit conditions and land values. The most recent survey covers the period ending December 31, 2007.

Values surged 16% across northern Illinois, northern Indiana, Iowa, Michigan and Wisconsin, the region served by the Chicago Fed bank. Lenders responding to the survey noted values rose by 6% in the fourth quarter alone. Leading the Chicago district was Iowa, with bankers there saying values jumped 18% in 2007 and 6% during the fourth quarter. Indiana bankers said values rose 16% while Illinois and Michigan bankers reported a 15% gain in 2007. Wisconsin posted the smallest increase at 11%.

Values exploded 16% to 20% across Minnesota, Montana, North Dakota, South Dakota and northwesten Wisconsin, the region served by the Minneapolis Fed bank. The bank says values rose the greatest in South Dakota (up 22% for dryland and 30% for ranchland) and the slowest in Montana, up 5% and 3% respectively.

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