date:Aug 28, 2012
land price decreases.
So, will that happen? Schnitkey says he doesn't expect farmland returns to decline anytime in the near future, but the same is likely not true for interest rates. So, if land values do start to slip in the future, interest rates will be the likely culprit, a circumstance that does have historical context.
In my opinion, rising interest rates pose the largest risk that could lead to farmland price decreases in the future. Current interest rates are very low and even small in