Although farmland values posted double digit gains of 14% year over year in October, all but 1% of those gains occurred in the first three quarters of time period leading the Federal Reserve Bank to take a less bullish stance on Midwest farmland values in the coming months. According to 195 agricultural bankers surveyed by the Federal Reserve, 75% of respondents were expecting farmland values to be stable in the fourth quarter of 2013, 21% expected values to decrease, and only 4% of respondents expected an increase in values. The leveling off, which is expected to sustain for the coming months, is driven in large part to lower grain prices as a result of bumper corn and soybean crops.
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