NEWS
Minding Ag's Business
Marcia Zarley Taylor DTN Executive Editor
Thu Jun 5, 2014 02:06 PM CDT

Marcia, in your June Businesslink column in "The Progressive Farmer" magazine, you quote a Farm Credit Administration economist saying, "We’re expecting a land value correction of 20% to 25%" over the next few years. What can make this happen? The price of the crop does not have the bearing as in the past. The price of land here has not stopped going up. --Cal

Cal, I can’t speak for the Farm Credit Administration’s rationale, but in general most economists say what buyers pay for land is based on future income prospects. In the long-run, that means land values mirror farm income and/or the ...

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