Farmland values fall in the USA

Photo: Ken Lund

Farmland values have been growing steadily in the USA for a long time, but in the third quarter of 2014, the trend appeared to come to an end.

Values in the Midwest dipped quarter-on-quarter, the first decline in five years, according to new figures.

Iowa, Wisconsin and Illinois saw the value of agricultural land decrease 6 per cent, 4 per cent and 2 per cent respectively compared to the previous period of three months. Indiana and Michigan both saw values rise quarterly, by 4 per cent 1 per cent respectively, but this growth was not enough to offset the area's overall slide.

The drop in value is linked to a similar decline in value of grain, which has previously seen 19 quarters in a row of growth. The decrease appears to have dented sentiment within the sector significantly, with 56 per cent of survey respondents saying they expect farmland values to continue declining in the fourth quarter, while 44 per cent said they expected them to stay the same or increase.