(NAFB) – The Federal Reserve Survey of Agricultural Credit Conditions shows that farmland values rose in the third quarter of this year.

The value of non-irrigated cropland rose by at least 12 percent in all of the participating Districts in the survey. The rapid increase was consistent in most states, with annual increases of more than 20 percent in some areas. Supporting farm real estate markets, interest rates on farm loans remained at historic lows, and strong farm finances also led to further improvement in agricultural credit conditions.

Despite consistent concerns about the increasing cost of inputs, agricultural lenders expect farm income and credit conditions to remain strong through the end of the year alongside higher commodity prices. At the same time, the rising value in farmland has bolstered farm balance sheets and provided additional support to the ag sector.

The outlook for farm finances and agricultural land values remains strong through the end of 2021.