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Quality farmland prices fall

Quality farmland prices fell slightly in the first quarter this year within the Eighth Federal Reserve District, reversing gains in the fourth quarter of 2013. The St. Louis Fed Ag Survey shows that despite the decline, quality farmland prices were still 7-and-a-half percent higher compared to a year ago. Most of the 49 Ag bankers surveyed, however, expect farmland values to decline over the next three months.

Farm income in the first quarter of 2014 was also down and bankers expect that decline to continue.  In contrast, cash rents on quality farmland show an upward trend and are expected to grow even stronger for ranchland and pastureland over the next quarter.  Lending competition in the farm sector remains strong.

The Eight Federal Reserve District covers seven states are Illinois, Indiana and Missouri, Arkansas, Kentucky, Mississippi and Tennessee.

Agricultural Finance Monitor – Federal Reserve Bank of St. Louis