Land Values Jump 11% to 22% Across Upper Midwest
March 4, 2008 by Mike Walsten, www.agweb.com
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.
Read article in it’s original format here:
http://www.agweb.com/Blogs/BlogPost.aspx?PID=89b7b4f0-ae27-4b83-b21c-4e3e44790aec
April 2nd, 2008 at 3:43 pm
Wisconsin may have had the smallest increase at 11%, but that’s still a double digit increase!
April 4th, 2008 at 11:25 pm
Where are these numbers coming from? Land values have been very stable and flat for late 2005 through first quarter 2008, Paper land holdings being sold off to private investors in smaller parcels have spiked the number some but in the end they are flooding the acreage market in the Northwoods. Although the only one to start price reductions at this time is Plum Creek holdings.
April 9th, 2008 at 12:53 pm
Hello Erik: Thanks for checking in to the blog. Here’s the full report: http://www.chicagofed.org/publications/agletter/february_2008.pdf -Patrick
PS Good article on your site with your take on northern property values.