Farmland values and rental rates declined modestly in the first half of the year, “and it appears that downward pressures are likely to continue into 2016,” say economists Gary Schnitkey, Bruce Sherrick and Todd Kuethe of U-Illinois. “While headwinds related to farm income will likely continue, current farmland prices do not appear out of line with current cash rent and interest rate levels.” Writing at farmdoc daily, the economists say the capitalized value of farmland exceeds current prices, which indicates land is not overvalued. In the late 1970s and early 1980s, land values ran well above capitalized values prior to the agricultural recession and a sharp decline in land values. “While farmland prices likely will continue to see downward pressure into 2016, the capitalized values do not suggest that farmland prices currently are too high or in a bubble condition,” say the economists.