The increase in farmland sales and interest rates, along with low commodity prices, could cause farmland values to decline in this year. Until now, farmland values have remained relatively stable along with demand for farmland, according to a Federal Reserve Bank of Kansas City recent outlook. From 2013 to 2018, U.S. farm income declined more than 50 percent while working capital declined 65 percent, but farmers continue to remain active buyers of farmland. Farmers accounted for more than 75 percent of farmland purchases in the Tenth Federal Reserve District in 2018, which includes Kansas, Missouri, Nebraska, and Oklahoma. Analysts suggests farmers continue to be attracted to land as a strategic investment and they may also be willing to accept lower returns on farmland than in the past.
For more news, go to www.Agri-Pulse.com.