Nonirrigated Cropland Values Reflect Strength of Commodity Markets in 2021
The Federal Reserve Bank of Kansas City recently reported that nonirrigated cropland values in the central United States increased by values between 9% to 28% for the third quarter of 2021 compared to the third quarter of 2020. Iowa and Minnesota nonirrigated cropland values rose at the highest rates of 28% and 26%. Nonirrigated cropland values in Nebraska increased by 16% (Kauffman & Kreitman, 2021a). Historically low interest rates, coupled with strong farm income across operations, fueled the growth in farm real estate values. Concerns remain across operations in heightened input costs for crop production and other common farm or ranch expenses.
To read more about the factors driving nonirrigated cropland values in 2021 and the outlook for farm real estate values in 2022, view this Center for Agricultural Profitability article.