The recent rise in farm values has many farmers across the country ecstatic. While the past year has seen repeated bouts of poor weather that have been difficult for many farmers, the overall picture of American agriculture is exceedingly positive. While some regions are still struggling due to weather concerns, (Texas and the Southwest, for example, have seen land values drop because of the ongoing drought) they are exceptions rather than the rule.
Nationwide, the rise in ethanol production and international demand for major American commodities has led to increased land value, benefiting farmers across the country. 2011 saw farm values rise 17 percent in value from last year.
This increase has led some credit administrators to worry about the future of farm lending. According to the chair of the Farm Credit Administration Leland Strom, high land values warrant extreme caution on the part of lending agencies.
“Our job as a regulator, because the system loans to agriculture, is to ensure that proper underwriting standards are taken and there’s not an access of leverage being taken on by system institutions and lending into the ag sector.”
Despite these concerns, Strom remains committed to ensuring that struggling farmers have access to credit.
To learn more about agricultural financing opportunities contact a Farm Plus Financial representative by calling 866-929-5585 or by visiting .
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Written by: Justin Ellison / Farm Plus Staff Writer