Federal Reserve Reports Show Farmland Values Remain Relatively Steady

August 10, 2018 12:21 PM
 
This week three Federal Reserve Bank districts released their quarterly land values and credit conditions reports.

This week three Federal Reserve Bank districts released their quarterly land values and credit conditions reports. While the reports do show a continuing decline of prices and farm income, they reveal farmland values remain relatively steady. 

The Kansas City Fed’s report showed the farm economy is deteriorating as commodity prices grind lower. They say credit conditions eroded in the second quarter of the year and bankers reported a modest increase in the number of borrowers unable to repay loans. 

When it comes to land values, they are slightly lower in the KC Fed’s district as well. The value of irrigated cropland saw the largest decrease, nearly 4%, from a year ago. Ranch land values are lower but continue to fall a very low rate, of 2%. Year-over-year, the decline in value of non-irrigated cropland was the smallest since early 2015, down 1%. 

The St. Louis district, which covers the southern Corn Belt and mid-South, bankers say there’s less volatility when it comes to farm income because it’s based on more contract poultry growers than row crop farmers. 

Farmland prices in the area fell 3.5% in the second quarter, but ranch and pasture values climbed 1.6%. 

Land values in the Midwest are holding steady. The 7th Federal Reserve district reported farmland edging up 1% in the second quarter. Wisconsin saw land values clime the most, up 4% and Illinois was the only state to see them decline, with a 2% dip. 

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Comments

 
Spell Check

C.K
bad axe, MI
8/13/2018 06:28 AM
 

  Trumps plan is a Bush plan of the 2000's , print,print,print more fiat dollars. Trump wants to raise the credit market debt from 71 trillion now to 83 trillion by 2022. 6% interest on 83 trillion is 4.9 trillion dollars the 93.5 million workers in the USA gross 4.5 trillion in wages per year . Someone reading this tell me how this isn't going to end up making 1929 look like a church picnic?

 
 
Truth
Marion, OH
8/13/2018 06:31 AM
 

  The lie of 15$ beans and 8$ corn brought to us falsely by our government, only lasted long enough to change the farm welfare program, and dub farmers into paying crazy amounts for land, causing property taxes to double, only to the benefit of a debt ridden government. I am a farmer who could see this happening and don't feel sorry for anyone who overpaid, and brought this upon all of us, even homeowners.

 
 

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