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Thursday, December 31, 2015

'Soft landing' in farmland market ahead?

'Soft landing' in farmland market ahead?: Crop producers are making plans for the 2016 season, reevaluating their leases and inputs in light of lower commodity prices. Farmland values are moderating as a result of softer crop prices, according to two recent reports by farm-lending institutions.

AgriBank, the St. Paul-based Farm Credit Bank, cited U.S. Department of Agriculture 2015 survey data. It showed that the annual change in farmland value across the 15-state AgriBank District, which includes Wisconsin, showed signs of slowing markedly in 2015, though not declining. District-average cash rents for cropland declined for the first time in more than 20 years. However, district-average cash rents for pasture increased.