Farmland prices are holding steady and agricultural banks are financially strong — potentially two key sources of support for the farm sector during the disruptions of the coronavirus pandemic — said the Federal Reserve in a report on Thursday. (No paywall)
The USDA will pay an annual rent of $55 an acre on land entering the Conservation Reserve through the recently completed signup, a drop of $8 an acre from the last time landowners idled large tracts of land in the reserve, said a USDA spokeswoman on Wednesday.
Farmland in Nebraska is worth 3 percent more than it was a year ago, an average of $2,730 an acre, said an annual report by the University of Nebraska on Wednesday. It was the first increase in agricultural land values in the state since they peaked in 2014.
The 2018 farm bill included a provision to make it easier for farmers operating on so-called heirs property — land that passed from one generation of a family to another without a clear title — to obtain a USDA farm number and thus gain access to a multitude of government programs. The Senate is scheduled to vote this afternoon on an amendment by Alabama Sen. Doug Jones to provide $5 million for a re-lending program that would be a step toward resolving ownership issues.
Agricultural lenders expect farm income, which weakened in the spring, to continue to decline this summer, although a recent rally in corn, soybean, and wheat prices will act as a stabilizer, said Federal Reserve banks in Kansas City, Minneapolis, and St. Louis on Thursday.
The average value of U.S. cropland is marginally higher this year, but has changed little overall since the collapse of the commodity boom early this decade, said the USDA’s annual Land Values report on Tuesday. Higher values west of the Great Plains, led by a 5.4 percent increase in …
U.S. farm real estate values rode the express elevator to the penthouse during the commodity boom, gaining an average $860 an acre in five years. They are still at elevated levels despite the sharply lower farm income of recent years but may drift lower in the near term, according to two examinations of the farm economy.
The USDA forecast net farm income of $69.4 billion this year. If accurate, the total would be the third year of net income below $70 billion since 2015. “We’re starting to see ... a new average coming out here,” said USDA economist Carrie Litkowski on Wednesday.
Ag bankers in the Midwest say farmland values were steady overall in 2018 and rose by 1 percent in the final three months of the year, reported the Chicago Federal Reserve on Thursday in its quarterly AgLetter.
With a nationwide average of $4,130 an acre this year, the value of U.S. cropland is nearly unchanged from the 2014 average of $4,100 an acre, according to an annual USDA survey of producers.