Corn Belt Farmland Values Flat, Inflation Adjusted Decline Hits 3.7%

The Federal Reserve Bank of Chicago has released its quarterly survey of Corn Belt ag bankers, showing that farmland values in the region have been relatively stable, but with some interesting nuances. The bank reports that farmland values for 'good' agricultural land were flat in the second quarter of 2026 compared to a year earlier.

In fact, when adjusted for inflation using the Personal Consumption Expenditures Price Index (PCEPI), there was a year-over-year decrease of 3.7% in district ag land values. This is the largest decline since the third quarter of 2016, according to the bank.

The survey also found that agricultural credit conditions were weaker in the second quarter of 2026 compared to a year ago. The share of farm loans with 'major' or 'severe' repayment problems increased to 3.7% from 2.9% last year, and repayment rates for non-real-estate farm loans were lower.