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Midwest Farmland Rose 17% in Second Quarter, Chicago Fed Says

Farmland values in one of the most productive regions in the U.S. Midwest rose 17 percent in the second quarter from a year earlier as higher grain prices made real estate more attractive, the Federal Reserve Bank of Chicago said in an e-mailed report.

Rising demand for wheat, corn and soybeans boosted earnings, supporting higher land prices in the five-state Seventh Federal Reserve District, according to the report. The increase in farmland values was the biggest since the 1970s, the Fed said. Gains were reported in Illinois, Iowa, Indiana, Michigan and Wisconsin.

To contact the reporter on this story: Jeff Wilson in Chicago at jwilson29@bloomberg.net

To contact the editor responsible for this story: Steve Stroth at sstroth@bloomberg.net

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