What has been considered the “Back Bone of America,” ever since the United States was founded? That would be agriculture. Sure we had a big industrial boom and have created some amazing products over the years but there is one thing that has remained. That would be the farms and the people behind them bringing us fresh produce day-in and day-out. There is some great news for those farmland owners as the value of land has been sky rocketing not just here in Michigan, but across multiple states throughout region.
One example of expanding farm values are two major sales that took place in Iowa. At first, there was a record breaking deal that brought the seller $16,000 per acre. Shortly after that deal was finalized, a sale of $20,000 per acre was made, two astonishing amounts that haven’t previously been matched.
The Federal Reserve Bank of Chicago reported an overall increase of 25% in farmland value for states located within the local region. The states surveyed involve Illinois (+23%), Indiana (+29%), Iowa (+31%), Michigan (+16%), and Wisconsin (+17%). These are the highest increases in farmland value since the late 1970’s. Other states seem to be experiencing staggering numbers as well. The University of Nebraska reported that over the past five years, values have risen 83 percent.
Multiple factors account for rising farmland value such as high commodity prices, population increases, increased farm income and even low interest rates. One downside that seems to be coming along with these prices is that people looking to begin their own farm are facing higher prices than ever before. Causing some banks to shy away from backing new farmers. That’s where Riverbank Finance comes in for the rescue! At least for Michigan farmers that is. We can help you out with Michigan Farm Loans. All you need to do is take the fist step by calling a certified loan-officer at 1-800-555-2098.
