Farmland values plateau with occasional declines
High interest rates and lower commodity prices are front-of-mind factors for farmland buyers, said Farmers National Co., a large farm management and real estate company. "Despite these negative pressures, the land market has remained relatively resilient but shows signs of settling in general, including single-digit decreases in specific areas," said Paul Schadegg, senior vice president.
After run-up, farmland prices may become more stable
Higher interest rates and weaker commodity prices may slow the momentum for ever-higher farmland values, said the Chicago and Kansas City Federal Reserve banks in quarterly reports on Thursday. "After this unusual period of large farmland gains, it wouldn't be too surprising if we were back to that general stable [land value] scenario for a while," said David Oppedahl, policy adviser at the Chicago Fed.