FarmPolicy

June 16, 2019

Ag Economy; Regulatory Issues; and Trade

Agricultural Economy

Reuters writer Christine Stebbins reported on Wednesday that, “Prices for farmland in the heart of the U.S. grain belt were up 17 percent in the second quarter compared to a year ago [related graph], the biggest jump since 1977, the Federal Reserve Bank of Chicago said on Wednesday.

“The rising values were driven by strong crop, livestock and milk prices which spurred farmers and investors to buy land, the bank said. Low interest rates have also boosted demand [related graph].

“‘The combination of higher revenues for crop and livestock production has been an impetus for the significant increases in agricultural land values seen this year in the district,’ the Fed said in its quarterly newsletter, adding ‘demand for farmland remained strong from both farmers and investors.’”

(more…)