Even though farmland values in the Midwest seem to still be on the rise, the demand for farmland used for recreation or development has fallen, says John Henderson, vice president and Omaha executive, Federal Reserve Bank of Kansas City.
Recreational and residential demand for farmland has fallen over the last five years, while farm lease demand has remained relatively stable.
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What we've seen is that the demand for low-quality land that is really good for recreation has really softened,” Henderson says.
In addition, the land outside of urban centers is not rapidly being developed at the same pace it was a few years ago. "Sprawl has slowed,” he says.
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