The Chicago Federal Reserve recently released their 4th Quarter 2017 AgLetter. They reported a year-over-year 1% increase in “good” farmland values across the 7th District (including IL, IN, IA, WI and MI). However, Illinois reported a 1% decline in values; with IN, IA and WI all gaining 2-3% for 2017. Fur-ther, northern Illinois reported a 3% decline, while central Illinois reported a 1% increase.
Prior to this slight increase in “good” farmland values, the District has reported 3 consecutive years of value declines since the high in 2013. This avoided exceeding the three consecutive years of declines during the 1984-86 time period.
The District also reported the value changes in real terms, adjusted for inflation. In real terms, the Dis-trict experienced an annual decrease of 1% during 2017. This was the fourth annual real decline in a row. Comparing to the 80’s again, when the District had seven consecutive years of real declines. Over-all, in real terms there has been a 10% correction in District farmland values since 2013.