Farmland prices are rising faster in Iowa than in any other state in the Federal Reserve Bank of Chicago’s district.

The value of “good” farmland in Iowa increased 8 percent from last April, according to a Federal Reserve report that analyzed the district. Prices were flat in Michigan, increased 4 percent in portions of Illinois and 7 percent in Indiana, and fell 1 percent in Wisconsin.

The value of farmland in the district as a whole has increased 4 percent since last April, and 2 percent since Jan. 1 of this year.

Statewide, Iowa’s farmland prices are up 3 percent for the first quarter. The values of south central counties’ farmland have increased the most, rising 7 percent in the first quarter of 2010 and 10 percent for the 12-month period ending April 1. Four of the five sections of the state had increasing farmland values for the quarter and the year. See the map.

The north central counties’ farmland values increased 1 percent in the first quarter and are up 8 percent from a year ago.

However, despite the increases, the amount of farmland for sale, the number of farms sold and the total acreage sold weakened in the first quarter of 2010 as compared with the same period last year.

Bankers anticipated stable land values during the second quarter of 2010, according to the report.

2009 was the first year since 1999 that the price per acre dropped from the prior year. The price per acre was $4,371 in 2009.

See the full report.