After climbing steadily for two years, farmland values eased somewhat in the Tenth Federal Reserve District, although values remained well above year-ago levels. In the second quarter, irrigated land posted an annual gain of 21.6% and the value of non-irrigated land rose 18.3%, according to the Federal Reserve Bank of Kansas City’s second quarter survey of agricultural credit conditions.
The survey of 265 banks in the Tenth Federal Reserve District (Colorado, Kansas, Nebraska, Oklahoma, Wyoming, northern New Mexico and western Missouri) found that the farm income index pulled back from record highs due to the rising costs of energy-related crop inputs such as fertilizer, fuel and chemicals. Rising input costs also boosted loan demand as farmers borrowed to cover operating expenses.
To see a complete summary, go to www.KansasCityFed.org/agcrsurv/agcrmain.htm .