Wisconsin Agriculture Land Values Resilient

Despite declining agriculture land values in Iowa, Michigan and Illinois, Wisconsin has been able to hold its farmland values steady through 2016.

According to a federal survey of the Seventh Federal Reserve District, Wisconsin’s agriculture land values increased three percent while the region decreased by one percent in 2016.

Most signs during the past year pointed to decreasing land values, making the Wisconsin case something of an anomaly.

Land values are generally going down because of decreasing commodity prices. If the corn isn’t worth as much, the land you grow the corn on won’t be worth as much either. At the same time, interest rate increases are making it increasingly harder for farmers to justify and receive loans from banks. With less money to spend, land values should decrease to meet the amount that farmers are able to pay.

So what’s the deal with Wisconsin?

Dennis Badtke, chief appraiser for Badgerland Financial, told WPR that the diversity of agriculture land uses in the state has helped Wisconsin land prices be resilient. The large amount of livestock in the state also means that demand for land to spread manure has remained pretty high, holding up land prices.

The survey painted a slightly pessimistic view of the next year, with 40 percent of respondents saying land values will decrease and 60 percent saying that land values will just stabilize.

Crop prices (Feb. 13)

Rio Creek Feed Mill – Algoma

Fox River Valley Ethanol – Green Bay

Basis: The difference between the local cash price for a commodity and the Chicago cash price (where the Board of Trade sets national futures price).

Gas Price Averages

United States: $2.28

United States one year ago: $1.70

Wisconsin: $2.23

Wisconsin one year ago: $1.51

Northern Door: $2.28

Sturgeon Bay: $2.27

Other Commodities

Gold: $1,224.20/troy ounce

Silver: $17.84/troy ounce

Oil: $52.86/barrel

Sources: aaa.com, agweb.com, gasbuddy.com, money.cnn.com, WisContext.org, Wisconsin Ag Connection