Farmland prices fell for the seventh month in a row in the Rural Mainstreet Index compiled by Creighton University, but at a slower rate. “Stronger farm commodity and grain prices over the last several months appear to have put a floor under farmland prices,” said professor Ernie Goss. The index is based on a survey of bank CEOs in a 10-state area. In June, the index for farm and ranch land rose to “a weak 49.1 from May’s even weaker 46.7,” said a Creighton news release. Goss said he expects the farmland index to top 50 next month.
Bankers said less land was being sold for cash payment and investors were buying a smaller share of it. Farm equipment sales were weak. Some 47 percent of bankers said higher beef and pork prices sparked an upturn in economic activity. Some cautioned of a downside. Creighton quoted David Steffensmeier, president of First Community Bank in Beemer, Neb, as saying, “High beef and pork prices will cause the same problems that high grain prices did the last few years – unreasonable expectations.”