By Andi Anderson
Farmland values in the Midwest increased slightly during the first quarter of 2025, according to the Federal Reserve Bank of Chicago. The data shows a 1% rise compared to the same period in 2024, and a 4% increase from the previous quarter.
David Oppedahl, a policy advisor at the bank, noted that this modest upward trend follows a decline seen at the end of 2024. He explained that the recent growth was mostly observed in areas with a strong focus on livestock and dairy farming.
Wisconsin, known for its dairy industry, showed the most notable increases. In contrast, regions more dependent on crop production such as Iowa, Illinois, and Indiana saw smaller changes. Oppedahl mentioned that Indiana even experienced a slight decline in farmland value from a year ago.
Despite the increase in land values, Oppedahl pointed out that overall demand for farmland is down compared to last year. There have been fewer land sales, and buyer interest has declined, affecting the overall farmland market.
The Seventh Federal Reserve District includes parts of five states: Illinois, Indiana, Iowa, Michigan, and Wisconsin. The report offers insight into how different types of agricultural regions are responding to economic and environmental changes.
The farmland market is complex and influenced by various factors such as commodity prices, interest rates, and regional demand. While livestock-heavy areas are currently performing better, crop-focused states are seeing more stability than growth.
As 2025 progresses, experts will continue to monitor how land values shift across the region, especially as planting and harvest seasons impact the economic outlook for farmers and landowners.
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Categories: Indiana, Business