Indiana farmland values jumped 6% year over year, according to a new report from the Seventh Federal Reserve District in Chicago. The federal reserve says it is the biggest increase of the five Midwestern states in the district.
The third quarter shows the value of good farmland in the Hoosier state climbed 2% from the previous quarter.
Districtwide, the value of farmland increased 2%, compared to Q3 of 2019. The fed says it has not seen this large of a year-over-year increase in its farmland values during the past six years.
The report is based on a survey with 144 bankers in the five Midwestern states in the Chicago district.
Economists attribute the increase to lower interest rates, additional government payments, and some rising agricultural prices.