The Federal Reserve Bank of Kansas City's fourth quarter Survey of Agricultural Credit Conditions finds the value of farmland has surpassed the highs set last quarter, reports Agriculture Online."In the survey of 268 banks in the seven-state Tenth Federal Reserve District (shown in map), both non-irrigated and irrigated cropland values surged at a record pace, rising 21 percent and 18 percent above year ago levels," the report says. "Bankers also cited more farmland sales in 2007 than in the previous year."
The survey concludes that cropland prices, specifically nonirrigated land, should continue to rise this year. (Read more)
In a related story, The Associated Press reports the price of nonirrigated and irrigated cropland in Kansas increased 20.4 percent and 18.8 percent, respectively, during the fourth quarter of last year, compared to the same period the year before. Values in western Missouri were up 24 percent and 13 percent, respectively. " Buyers have long valued rural property as an investment or for recreational uses," the AP reports. "But experts said the most recent surge is being driven by skyrocketing crop prices, especially for materials used in biofuels." (Read more)
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