Farmer walking through soybean field at sunsetThe Federal Reserve Bank’s attempt to stifle inflation through higher interest rates appears to be having little influence on farmland values. Farmland prices surged an average of 20% this summer as buyers were seemingly unfazed by the higher interest rates. Demand has remained strong, particularly for highly productive cropland in the Corn Belt.

While values have seen a more measured pace as of late, the trend can be attributed to volatility in crop markets, higher expenses and drought. Even so, corn and soybean revenue will remain strong and higher than last year, despite slightly lower yields per acre. Ag bankers raised interest rates by 85 basis points on farm operating loans and 110 basis points on real estate loans. Values still have surged as much as 34% higher in states with the highest-quality ground.

Read more on farmland values here.