Survey Reveals Strong Farmland Values
Survey Reveals Strong Farmland Values
The Tenth Federal Reserve District released its third-quarter survey of agricultural credit conditions. Overall, the agriculture economy has remained positive despite major threats like drought and inflation. Farmland income and credit conditions continued to be favorable, but at a slower pace than in other quarters. The value of non-irrigated farmland increased from 3 percent to 23 percent from the previous year. Interest rates on farm loans increased sharply, reaching their highest level since 2019. Farm finances remained strong, but an increase in overall income and liquidity were down in comparison to other quarters. Consistent improvements in repayment solutions are reflecting low “problem loan” rates. Going into 2023, continued drought, volatile markets, and high input costs are predicted to be the top agriculture concerns. Read more HERE.