Farmland values in the Chicago Fed District fell one percent from year-ago levels during the second quarter of 2019, according to the latest update from the bank.
But the survey of 157 bankers in the district that covers northern areas of Illinois and Indiana, southern Wisconsin, the lower Peninsula of Michigan and the state of Iowa, did however, report values for “good” agricultural land held steady with the first quarter. The region experienced excessive rainfall, historic flooding and widespread planting delays this spring; not surprisingly, bankers indicated that 69 percent of their borrowers were at least modestly affected by extreme weather the first half of the year.
Nevertheless, the 83% of respondents expect ag land values to hold steady during the third quarter. However, the bank reported that there were “major” or “severe” repayment issues with 6.2% of the district’s ag loan portfolio, a level not seen since the second quarter of 1999.
Welcome
