Agricultural News
Farm Real Estate Values Strong This Past Year- and Early Here in 2011
Wed, 02 Mar 2011 4:51:26 CST
The low interest rates over the last year or so has caused a lot of investors to think about putting some of their cash into the ground- not in a Mason Jar but rather as a down payment or more for farmland. Jason Henderson of the Omaha branch of the Kansas City Federal Reserve Bank says that farm real estate values shot substatially higher in the last four months of 2010- and high high they might go is still an unknown.
Low interest rates is one factor for the higher farm real estate values- the other key is the general escalation of commodity prices seen in 2010 and now early this year as well.Henderson says the danger for agricultural producers is that the up trend for farm real estate will come to an abrupt halt once interest rates start rising. He told Ron Hays with the Radio Oklahoma Network that he doesn't think we are facing a wreck in the farm economy like we saw in the 1980s- but that it could get bumpy depending on how quickly rates rise- when they strart moving up.
Henderson also discussed farm income prospects for 2011 and beyond- and says interest rates will play a role in those levels as well. Click here for a review of farm income in 2010 within the Kansas City's territory- which includes Oklahoma- and how that sets the stage for 2011.
A group of farm broadcast journalists gathered around Henderson after his remarks on Tuesday at the Ag Issues Forum sponsored by Bayer Crop Sciences. The Ag Issues Forum is one of several premliminary events that help kick off the annual joint meeting of several major commodity groups- Commodity Classic.
Click on the LISTEN BAR below to hear the questioning by several farm broadcasters- including our own Ron Hays- of Jason Henderson.
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