What’s Going on With Farmland Values?

By Brent Gloy

The recent release of the March 2017 Iowa Land Trends and Values Survey estimated that Iowa farmland values were slightly higher than they were 6 months ago and only 2.7% lower than a year ago.  These results provide some encouragement that perhaps land values are starting to stabilize after falling from their peak.  This week we decided that it would be a good time to look at farmland value estimates from around the country. Continue reading

Ahead of the Fed — Farm Level Interest Rates

By Brent Gloy

At the end of 2015 many expected that the Federal Reserve might raise interest rates several times in 2016.  This was not an unreasonable guess as the December 2015 economic projections of the members of the FOMC suggested that most thought increases in the targeted Federal Funds were likely.

As it turned out, there were no additional increases in the target through November, setting up the December meeting as the last likely opportunity for a 2016 increase.  While we discussed the potential for farm level impacts of an increase back in 2015, we thought now would be a good time to take another look at farm level interest rates and begin to think through some of the implications of a potential interest rate increase. Continue reading

Cash Rent Adjustment Continues

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by Brent Gloy

Now that harvest is rapidly winding its way way to completion, many farm tenants and landowners will quickly turn their attention to cash rental rates for 2017.  Cash rental rate decisions and discussions can often be challenging, especially in times of rapid commodity price changes. It is no surprise that cash rent and farmland values probably account for largest number of questions that we receive from readers and seminar participants.  Continue reading