U.S. Midwest farmland values rise in 2nd qtr -Chicago Fed

Thu Aug 14, 2014 3:30pm EDT

Aug 14 (Reuters) - Farmland prices in the U.S. Corn Belt rose during the second quarter of 2014, bouncing back from a dip in the first quarter, despite outlooks for lower grain profits as crop prices fall, the Federal Reserve Bank of Chicago said on Thursday.

Agricultural land values increased 2 percent in the April-June period from the previous three months and were up 3 percent from year-ago levels, the Chicago Fed said in its quarterly survey of 230 farm bankers in the region.

"Farmland values were partly buoyed by a spring rally in corn and soybean prices, which occurred before these crop prices started falling again in May," the bank said. (Reporting by Christine Stebbins in Chicago; editing by Matthew Lewis)