There was an annual increase of 22% in the Seventh Federal Reserve District’s agricultural land values in 2021 — the largest such rise over the past decade, the Federal Reserve Bank of Chicago said last week.

The district covers Illinois, Indiana, Iowa and parts of Michigan and Wisconsin.

The Kansas City Federal Reserve Bank said, “Farmland values continued to increase at a rapid pace through the end of 2021. Alongside sustained strength in farm income and credit conditions, the value of all types of farmland in the 10th District was more than 20% higher than a year ago. The recent strength in agricultural real estate markets has been supported by strong demand, historically low interest rates and vastly improved conditions in the farm economy.”

The 10th District includes Colorado, Kansas, Nebraska, Oklahoma, Wyoming, and portions of western Missouri and northern New Mexico.

The Minneapolis Federal Reserve Bank does not appear to have issued a recent report on land values in the Ninth District, but has posted an article explaining why farmland values sometimes appear stronger than warranted.

The Ninth District is composed of Montana, North Dakota, South Dakota, Minnesota, 26 counties in northwestern Wisconsin, and the Upper Peninsula of Michigan.