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Farm Credit Administration CEO concerned about farmland values

The CEO of the Farm Credit Administration is apprehensive about farmland values.

During a House Ag Appropriations subcommittee hearing Wednesday, Glen Smith said he’s surprised by the resiliency in land prices.

“It does irritate me a little bit to hear that land values have stabilized because I always add ‘for now.”

If negative circumstances continue, he says land values are vulnerable.

“And we saw that back in the 80’s, beginning in ’79 we had trade issues back then. We had some severe problems. In ag, we saw about a 15 to 20 percent loss in land values in the Midwest.”

Smith told the committee while the farmland market isn’t where it was in the mid-80’s, there’s still a certain element of fragility. 

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