Oklahoma Bankers Association
OBA News and Information
Linked In Email News

Farmland values climb according to recent Fed survey

Federal Reserve Tenth District farmland values hastened their climb in the third quarter of 2010 with rising farm income and robust demand for farmland, according to the Federal Reserve Bank of Kansas City's recent Survey of Agricultural Credit Conditions.

A summer rally in crop prices continued through the fall harvest as global and domestic grain supplies were lower than expected. Higher crop prices boosted farm incomes, supporting strong annual gains in cropland values.

Robust demand by farmers was still the primary driver in farm real estate markets in the seven-state District, though investor interest in good quality farmland remained high. While the supply of farmland on the market has declined over the past couple of years, some survey contacts felt that current elevated prices and the prospect of higher capital gains taxes in 2011 could prompt some farm owners to consider selling before year-end.

To read the complete survey, click here!

Back to top