AgConditions

The Seventh Federal Reserve District states of Illinois, Indiana, Iowa, Michigan and Wisconsin continue to play a key role in the agricultural economy of the United States, as well as the world. Although agriculture's share of the total Seventh District economy is decreasing, it remains a very important part of the larger economy.

Notes: For charts of indices, bankers responded to each item by indicating whether conditions during the current quarter were higher, lower, or the same as in the year-earlier period. The index numbers are computed by subtracting the percent of bankers that responded "lower" from the percent that responded "higher" and adding 100. These indices exclude real estate loans.

The chart of interest rates is based on data from the Chicago Fed's Land Value and Credit Conditions Survey. This chart shows the average interest rates charged on farm loans. Since farming is a very capital-intensive industry, many farmers make extensive use of borrowed funds. High interest rates mean larger expenses and less profit.

Source for all charts: Land Value and Credit Conditions Survey, Federal Reserve Bank of Chicago

Data on credit conditions at Seventh District agricultural banks and on farmland values in the Seventh District are available for download as spreadsheets. Recent data for credit conditions are also available on the third page of the AgLetter.

Seventh District Credit Conditions
Seventh District Land Values

On November 15, 2011, the Federal Reserve Bank of Chicago held a conference to explore the factors contributing to large increases in agricultural land values and cash rental rates in the Midwest. Farmland values increased 16 percent from a year ago in the first quarter of 2011; 2011 cash rents for farmland increased 16 percent as well. At the conference, experts from academia, industry and policy institutions will present research on the causes of rapid increases in agricultural land values and cash rents, as well as their interrelationship. Presentations are now available on the Agenda tab on the conference site. Read more... 

On November 9, 2010, the Federal Reserve Bank of Chicago held a conference to examine the Intersection of Midwest Agriculture and Rural Development. Presentations are now available on the Agenda tab on the conference website. A summary of the conference is now available in a special edition of the Chicago Fed Letter.

On December 1, 2009, the Federal Reserve Bank of Chicago held a conference, Perspectives on the Future of Agriculture in the Midwest, which gathered experts from academia, industry, and policy institutions to discuss the possibilities for agriculture in the region. Read the February 2010 special edition of the Chicago Fed Letter for a summary of the conference.