What’s Supporting Farmland Values? Part 1

Although off their highs, U.S. farmland values have held up remarkably well. A continuation of a very low-interest rate environment along with a strong cash rental market appear to have been some of the factors that have made the strongest contribution to this trend. I discussed some of these trends at the recent DTN Ag Summit. You can download my slides here. This and a subsequent post will provide a summary of my comments. The first discusses rental rates and farm economics in the context of the farmland market and the subsequent post will examine farmland valuations. (more…)