Oskaloosa.com

August 16, 2013

Midwest, Iowa farm values steady

MATT MILNER
Courier Staff Writer

OTTUMWA — Iowa's farmland values held steady in the second quarter of 2013, but there were fluctuations depending on where you live.

The Federal Reserve Bank of Chicago says Iowa values were unchanged for the quarter, but up 18 percent compared to the second quarter of 2012. That year-to-year gain closely matches the overall gain in the district, which includes most of the midwest.

The district as a whole also saw no quarterly gains, the first time since 2009 that has happened.

The bank divides Iowa into five districts, with southeast Iowa split between the third and fifth district. In the third district, which includes south-central and southeast Iowa to about Lee County, quarterly values actually fell 9 percent. But the fifth district, which includes areas along the Mississippi River and westward into Mahaska and Keokuk counties, saw a 6 percent quarterly gain.

Experts are split on what the future holds. The federal reserve said the percentage of banks expecting prices to rise in the third quarter is the same as the percentage expecting a quarterly decline. The vast majority, 86 percent, expect values to stay approximately the same.