Value of Iowa farmland held steady in third quarter
The value of Iowa farmland remained unchanged in the third quarter, with prices increasing 2 percent over the year that ended in October, according to the Federal Reserve Bank of Chicago. For the five-state area covered by the Chicago Fed report — Illinois, Indiana, Iowa, Michigan and Wisconsin — land prices dropped 1 percent. The report is based on replies from 201 agriculture lenders in the region. Credit conditions deteriorated in the third quarter, with the availability of funds for lending by agricultural banks declining relative to a year ago — the first such occurrence in 11 years. The demand for non-real-estate loans was up from a year ago, resulting in a surge in the average loan-to-deposit ratio for the district to 77.4 percent — its highest level in nine years. Repayment rates for non-real-estate farm loans were lower in the third quarter than a year ago, and loan renewals and loan extensions were higher.