Farmland values across the Federal Reserve’s 7th District held steady in the second quarter of 2024, marking the slowest growth since late 2024, according to Farm Progress reporting based on a survey of 79 agricultural lenders . The district covers several of Land Sales Bulletin’s Midwest reporting states, including Iowa, northern Illinois, Indiana, southern Wisconsin, and Michigan’s lower peninsula .

Highlights

• Iowa led the region with a 4% annual gain in farmland values .
• Illinois posted a modest 1% increase, while Indiana values declined 3% and Wisconsin fell 2% .
• When adjusted for inflation, district farmland values declined 3.71% year over year, the largest real drop since Q3 2016 .
• Non‑ag buyers, including solar and data center developers, continue influencing land markets across the Midwest states .
• Credit concerns are mounting, with major or severe repayment problems rising to 3.7% of district farm loans, the highest level since 2020 .
• Not a single lender reported improved repayment rates compared to last year, and 27% indicated repayment rates are declining .

Farmland values may be flattening, but credit pressures are building across the Midwest. For LSB’s reporting states, the combination of stable nominal values and rising financial stress underscores the importance of monitoring both land markets and lending conditions heading into 2027.

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