Farm values have been dipping in recent years. However, the Bank of Kansas City has released a new set of numbers, or “plateau,” indicating the values of farmland in the Fed’s 10th district now that the numbers have stopped declining.
A survey was conducted with farmers in Kansas, Nebraska, Oklahoma, Colorado, Wyoming and New Mexico to obtain information showing the numbers have stopped declining.
“Despite weaker farm incomes and credit conditions, district farmland values held steady in the third quarter, remaining below year-ago levels,” Fed economist Brian Briggen said. “Since falling in the fourth quarter of 2008, District farmland values overall appear to have reached a plateau.”
One thing to take into consideration with the decline is dwindling farm profits. “In the third quarter, more District bankers reported weaker farm incomes due to sagging protein demand a summer decline in crop prices,” Briggens explained. “With shrinking margins, livestock producers have been cutting supplies by culling herds and consolidating feedlots.”
The good news is that despite economic concerns, farmland is steady in the third quarter and is expected to stay that way.
Federal Reserve stated interest rates likely to rise. Refinance your farm loan before rates go up. Call a representative by dialing 866-929-5585 or visit us online.