The value of Iowa farmland increased 4 percent in the first quarter and 27 percent in a one-year period ending April 1, the Federal Reserve Bank of Chicago said.

In a district made up of Iowa, Illinois, Indiana, Michigan and Wisconsin, farmland prices rose an average of 5 percent for the quarter and 19 percent for the year, according the Chicago Fed’s agricultural newsletter.

Despite record low interest rates on farm loans, there was weaker demand for non-real-estate loans in the first quarter compared with the first quarter of 2011. The average loan-to-deposit ratio fell to 66.5 percent, its lowest level in almost 16 years and 10 percentage points below the average level desired by bankers who responded to a survey.

Farmland cash rental rates climbed 17 percent from 2011, the second-largest increase in the history of the Chicago Fed’s survey.

Cash rental rates went up 20 percent in Iowa, 15 percent in Illinois, 15 percent in Indiana, 12 percent in Michigan and 19 percent in Wisconsin.