Another Federal Reserve survey shows cropland prices rising in another region of the Midwest

Last week, we noted a survey by the Tenth District of the Federal Reserve Bank that showed cropland prices had jumped significantly in its service area from the year before. This week, a survey from the adjoining Seventh District (map) found cropland prices were on the rise there as well.

Farmland prices in the area rose 16 percent, the largest annual jump since the grain-boom days of the late 1970s. "David Oppedahl, business economist for the Chicago Fed . . . said the farmland price increase mirrored higher net farm income that was boosted by higher prices for crops at the end of 2007," , reports Jerry Perkins of the Des Moines Register. A record use of land for corn — prompted by ethanol needs — also helped the surge. (Read more)