The following commentary does not necessarily reflect the views of AgWeb or Farm Journal Media. The opinions expressed below are the author's own.
Paul is now part of the fourth generation in America that is involved in farming and hopes the next generation will be involved also. Through his blog he provides analysis and insight to farmer tax questions.
AgriBank, which is owned by 17 affiliated Farm Credit Associations primarily located in corn belt states issued a 14 page analysis of farmland values and the effect on these values if commodity prices decrease or interest rates rise. Their analysis included regression studies and here are some of the conclusions:
Falling crop prices and rising interest rates could take several years to be fully reflected in crop land values. They are also suggesting that a reduction corp prices would not affect farmers like the 1980s. They are already noticing a leveling off or reduction of top prices across their 15 state region and it will be interesting to see how crop land prices compare at the end of 2014 versus 2013.
We will keep you posted.
No comments have been posted to this Blog Post