Lower yields keep Fed Seventh Dist. farmland values from rising
February 13, 2020 By Tom Steever Filed Under: News
Chicago Federal Reserve bank officials say fourth quarter
2019 farmland values in the Fed’s Seventh District were the same as the fourth quarter
of 2018. They do say, however, there’s room for optimism because of a one
percent increase from the third quarter of 2019. Bankers say lower corn and
soybean yields this past year kept farmland values from going up compared to 2018.
In the survey of 142 agriculture bankers across the District, four out of five expect
farmland values to be stable this first quarter of 2020.
The District’s agriculture
credit conditions showed signs of improvement in the fourth quarter, but agriculture
bankers say they expect more than two percent of current agriculture borrowers won’t
qualify for operating credit this year. Respondents say almost 6 percent of
borrowers had major repayment problems in the fourth quarter, but that’s a slight
improvement from a year ago.
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