The average value of farmland in some Midwestern and Western states has risen 25 percent in the past year.
The Federal Reserve Bank of Kansas City, Mo., said Tuesday that
bumper crops and strong farm income in northern Plains states, like
Nebraska, helped push up prices despite drought and flooding.
The Federal Reserve says its third quarter survey of 243 banks
showed the largest annual increase in land values since the survey
started in 1980.
The 10th Federal Reserve District covers Kansas, Nebraska,
Oklahoma, Wyoming, Colorado, northern New Mexico and western
Nebraska farmland values increased the most with a roughly 40
percent jump over 2010.
The gains were smallest in drought-stricken Oklahoma, where the
value of non-irrigated farmland grew about 11 percent.