Farmland Values Plateau in the 4th Quarter

The most recent quarterly farmland survey released by the Chicago Fed shows the steady rise in farmland values may be about to level off. Prices have been steadily rising, buoyed by increased investor interest as economic distress eased. The latest Fed survey says, “Only 4 percent of the respondents anticipated higher farmland values in the October through December period of 2013, while 21 percent forecasted lower farmland values. Still, the vast majority (75 percent) expected no change in farmland value,” due to back-to-back droughts and declines in crop prices.