Midwest farmland values in our Midwest reporting states, showed their sharpest inflation-adjusted decline in a decade, according to the latest Chicago Fed AgLetter published by the Federal Reserve Bank of Chicago. While nominal values for good farmland held steady year-over-year, real values fell 3.7 percent — the largest drop since 2016 . Lenders across the region also reported weakening credit conditions and rising repayment challenges.
Midwest State Highlights (LSB Reporting States):
- Illinois: Year-over-year farmland values increased, supported partly by outside investment activity including solar and data centers.
- Indiana: Farmland values decreased year-over-year as credit conditions weakened and repayment issues rose.
- Iowa: Values increased year-over-year, though lenders noted commodity price volatility and elevated production expenses weighing on conditions.
- Wisconsin: Values decreased year-over-year, with lenders noting outside pressure from solar and data center demand may eventually plateau.
Only 5 percent of lenders expect farmland values to rise in the next quarter, while 81 percent anticipate stability and 14 percent expect declines.
Publisher: Farm Policy News
Report link: https://www.chicagofed.org/publications/agletter/2025-2029/august-2026
