Farmers Rejoice! No Deflation in Farmland Values, Says Kansas City Fed

Friday, August 13, 2010 1 Comments



Don't let Monsanto find out or they'll start doing the math and putting an even higher premium on their frankenseeds.

Reuters:

The value of farm land in the U.S. Central Plains rose nearly 4 percent in the second quarter as demand for farmland stayed strong from farmers and investors despite lower farm incomes, the Federal Reserve Bank of Kansas City said Friday.

"Demand for farmland remained solid as buying by both farmers and non-farm investors was active," the Fed said in its quarterly survey of 240 regional bankers.

"Survey respondents commented that very few farms were for sale, and most bankers expected farmland values to remain at current levels over the next three months," it said.

That's funny, I was just shmobbing through middle America not that long ago and noticed the exact opposite but maybe I was fucked up on beef jerky and Pilot coffee.

Jr Deputy Accountant

Some say he’s half man half fish, others say he’s more of a seventy/thirty split. Either way he’s a fishy bastard.

1 comments:

W.C. Varones said...

This is consistent with my running theme that Fed ZIRP and balance sheet expansion will lead to asset bubbles far more than wage inflation.

Farmland is an awesome asset to hold in a dollar devaluation scenario.