Strong commodity prices in 2022 have continued to fuel the continuously surging farmland values across the Midwest and the Plains. In a recent update, the Federal Reserve reports that the value of nonirrigated cropland rose by more than 20% from last year. Kansas and Iowa saw 29% and 28% growth, respectively, while Colorado, Wyoming, and northern New Mexico saw jumps of 32%.

While the agricultural economy remains strong, some lenders expect conditions to decline later in the year due to more expensive inputs and drought across most of the Western U.S.

Read more on farmland values here.