date:Aug 28, 2012
eans any fluctuation like this in interest rates could have a quicker and sharper effect on land values than that to which the market's become accustomed in the last 2 decades, Schnitkey says.
While farmland prices have increased rapidly in recent years, comparison of farmland prices to capitalized values suggest that farmland prices are supported by current cash rent and interest rate levels, he says. In the future, decreases in farmland returns or increases in interest rates could lead to farm