In recent years, farm real estate (land and structures) has typically accounted for about four-fifths of the total value of U.S. farm assets. Farmland values have stabilized since 2014, following a long trend of appreciation since the 1980s. However, there is regional variation in both farmland value levels and growth trends.
At the monthly meeting of the Farm Credit Administration held on Nov. 14, the board received an update on credit conditions in the Farm Credit System. Despite increased risk in certain segments of the System’s loan portfolio, overall System credit metrics remain favorable.
Agricultural lenders are keeping a close eye on farmer finances, which includes trends in farmland values. Federal Reserve Banks throughout Mid-America are reporting that land values generally trended downward in the second quarter of 2016.
It would seem that the lackluster pace of U.S. farmers’ spending for big ticket items, most notably equipment, during the first half of the year will continue into the second six months of 2015.
As the Federal Reserve backs away from its policy of quantitative easing that it has employed during the last several years in an attempt to jumpstart the U.S. economy, it's expected to push up interest rates for borrowing.
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In this episode of On the Record, brought to you by Associated Equipment Distributors, we take an initial look at the Dealer Business Outlook & Trends Report and what dealers are forecasting for 2025.