“Expectations of lower profits for crop producers have generally halted the rise in district cropland prices,” said the Kansas City Federal Reserve Bank. In a quarterly report, it said “some bankers expected additional easing in cropland values in the next three months but felt that ranchland values could strengthen further.” Ranchland values rose by 2.6 percent during the first quarter.
With corn and soybean futures prices moving lower, bankers in the Plains expect lower farm income this year than last, said the Kansas City Fed. Feed prices dropped during the first quarter of this year and, along with higher livestock prices, should improve livestock profit margins. The Chicago Fed said lower land rental rates in its region reflected lowered prospects for profits. Reuters said crop land values dropped 6 percent in the St Louis Federal Reserve district.