German is a Data Scientist at FBN, working at the intersection of data science, agronomy, and finance. He comes from a family farm, and agriculture has guided much of his career. He holds a B.S. in agronomy, an M.S in agricultural economics, and a Ph.D. in crop sciences. He has more than ten years of experience working for different companies in the farming sector, including grain trading, input selling, farm management, and corn breeding.
To determine the relationship between farm income and farmland values across the central United States, the FBN® Data Science team assessed a wide range of FBN and USDA data points.
The CSR2 is Iowa's most widely used soil PI, and it is only available for soils in that state. By combining historical corn yield records and soil characteristics, the CSR2 produces a relative rating of corn productivity in the state.
Many things have changed in the farm economy in recent months. Interest rates increased, inflation seems to be getting under control and farm income reached a record high in 2022. How will these factors affect farmland values in 2023?
The price of farmland in Illinois grew 25% year-on-year, commanding more than $10,300 per acre. This follows a 5% increase in 2021.
The price of farmland in Minnesota grew 25% year-on-year, commanding more than $6,200 per acre. This follows a 12% increase in 2021.
The price of farmland in Iowa grew 17% year-on-year, commanding more than $11,100 per acre. This follows a similar 17% increase in 2021.
Farmland values across the U.S. increased substantially in many regions last year. What drove this growth in farmland prices?
The latest USDA Economic Research Service "Farm Sector Income & Finances" report indicates record highs last year, but figures are expected to decrease in 2023. Read on for more insights from the FBN Data Science team.
We see stability in farm land values in the future at this point, but that could change. The future ahead depends on the interaction of two main factors.