Economists and Lenders See Surge in Farmland Values Easing

Published on: 08:57AM Apr 12, 2012

Mike Walsten

Economists and lenders speaking at a recent forum on farmland values expressed the belief profit margins would slow the rise in farmland prices but not send values spiraling lower -- a view we've shared with LandOwner subscribers since the first of the year.

Alan Bjerga of the media company Bloomberg reported: "Declining profit indicates that farmers, who dominate rural land purchases, probably won’t bid prices higher, Ken Keegan, the chief risk officer at Farm Credit Services in Omaha, Nebraska, said today at a forum in Washington. Low interest rates and agricultural debt make a plunge from a record rally in farmland unlikely, he said." Click here for Bjerga's report.

Charles Abbott for the media company Reuters wrote: "The surge in farmland prices, which doubled in a decade amid an agricultural boom, should cool in the coming year as prices bump against the ability of cropland to pay for itself, said a panel of experts on Wednesday." Click here for Abbott's report.

If interested in what LandOwner subscribers read in our January 12, 2012 issue, just drop me an email at [email protected] and please mention "January outlook issue" in your email.