From agrimoney.com
Land values in the US Corn Belt fell by the most since the global financial crisis, while appreciation in the in central Plains market has slowed "considerably" - and prices are expected to drop further, central bank reports showed.Farm values in Plains states such as Kansas and Nebraska rose by 2.0%, year on year, for irrigated land and by 1.2% for non-watered plots, the weakest pace of price growth since 2009, the Federal Reserve's Kansas City bank said."After several years of strong price appreciation… cropland value gains have dropped considerably," the Fed said, adding that about one-third of bankers contacted for its survey forecast a further decline in values, against only 5% foreseeing an increase.Indeed, quarter-on quarter data showing prices already dropping for non-irrigated and, especially, irrigated sites, with values of the latter down more than 4%.'Dramatic decline'A separate report, from the Chicago Fed, on a Corn Belt region encompassing states such as Iowa, the top corn and soybean producing state, Illinois and Indiana, showed prices stagnated year on year - also the worst performance since 2009 - and falling by 2% quarter on quarter, the biggest drop since 2008,The value decline was blamed on a "dramatic" fall in crop prices, which had cut farmers' income prospects despite the likelihood of record yields."The continuation of a dramatic decline in corn and soybean prices helped drive down farmland values across most of the district," which also includes Michigan and Wisconsin, the Fed's Chicago bank said."The downturn in crop prices of the past two years finally extinguished the trend of rising farmland values that had prevailed in the district since the fourth quarter of 2009."Price prospectsIndeed, in this region, lenders were even more downbeat on prospects than those surveyed by the Fed's Kansas City bank, with 56% expecting values to fall in the October-to-December period, compared with only 1% expecting an increase."This is the first time since 1998—and only the second time since 1985—that a majority of respondents expected a decrease in farmland values for the upcoming quarter," David Oppedahl at the Chicago Fed said.Furthermore, "respondents anticipated the demand to acquire farmland this fall and winter to be weaker than a year ago for both farmers and nonfarm investors".Nearly one-half of bankers forecast a drop in the volume of deals this quarter, compared with a year ago, while 11% expected an increase
Land values in the US Corn Belt fell by the most since the global financial crisis, while appreciation in the in central Plains market has slowed "considerably" - and prices are expected to drop further, central bank reports showed.Farm values in Plains states such as Kansas and Nebraska rose by 2.0%, year on year, for irrigated land and by 1.2% for non-watered plots, the weakest pace of price growth since 2009, the Federal Reserve's Kansas City bank said."After several years of strong price appreciation… cropland value gains have dropped considerably," the Fed said, adding that about one-third of bankers contacted for its survey forecast a further decline in values, against only 5% foreseeing an increase.Indeed, quarter-on quarter data showing prices already dropping for non-irrigated and, especially, irrigated sites, with values of the latter down more than 4%.'Dramatic decline'A separate report, from the Chicago Fed, on a Corn Belt region encompassing states such as Iowa, the top corn and soybean producing state, Illinois and Indiana, showed prices stagnated year on year - also the worst performance since 2009 - and falling by 2% quarter on quarter, the biggest drop since 2008,The value decline was blamed on a "dramatic" fall in crop prices, which had cut farmers' income prospects despite the likelihood of record yields."The continuation of a dramatic decline in corn and soybean prices helped drive down farmland values across most of the district," which also includes Michigan and Wisconsin, the Fed's Chicago bank said."The downturn in crop prices of the past two years finally extinguished the trend of rising farmland values that had prevailed in the district since the fourth quarter of 2009."Price prospectsIndeed, in this region, lenders were even more downbeat on prospects than those surveyed by the Fed's Kansas City bank, with 56% expecting values to fall in the October-to-December period, compared with only 1% expecting an increase."This is the first time since 1998—and only the second time since 1985—that a majority of respondents expected a decrease in farmland values for the upcoming quarter," David Oppedahl at the Chicago Fed said.Furthermore, "respondents anticipated the demand to acquire farmland this fall and winter to be weaker than a year ago for both farmers and nonfarm investors".Nearly one-half of bankers forecast a drop in the volume of deals this quarter, compared with a year ago, while 11% expected an increase
guess I'm not helping the situation, added 400ac of native prairie to my seeded acre column over the last 3 years
Comment