The Minneapolis Federal Reserve Bank quarterly survey revealed that farmland values in the Northern Plains continued to rise during the growing season. Rangeland and irrigated cropland values increased by 13%, while non-irrigated cropland rose by 3% during the second quarter of 2024.

This farmland value increase marks the continuation of a four-year trend despite financial tightening in the farm sector. Over 75% of bankers reported lower farm income in Q2 2024 compared to the same period in 2023. Most bankers expect further declines in Q3 due to falling grain prices and poor crop conditions.

In response to declining incomes and high operating costs, there has been increased demand for credit in the face of rising interest rates. Most bankers said they had not changed the collateral required on a loan. The district surveyed includes Montana, South Dakota, North Dakota, Minnesota, northern Wisconsin, and Michigan’s Upper Peninsula.

Read more on the rising land values in the Northern Plains here.