Rising Farmland Values: Causes and Cautions
On November 15, 2011, the Federal Reserve Bank of Chicago held a conference that explored the factors contributing to large increases in agricultural land values and cash rental rates in the Midwest. Farmland values increased 16 percent from a year ago in the first quarter of 2011; 2011 cash rents for farmland increased 16 percent as well. At the conference, experts from academia, industry and policy institutions presented research on the causes of rapid increases in agricultural land values and cash rents, as well as their interrelationship. The goals of the conference included analyzing demographic and geographical characteristics of Midwest farmland ownership; understanding the dynamics of farmland valuations; assessing the risks facing agriculture and the banking industry from rising farmland values; and discussing policy implications for agricultural lending stemming from current farmland trends.
Mark Pearson will take you on an entertaining journey – a look ahead at the outlook for farmland values. He'll explain where we are headed, and how commodity prices, global trends, consumer trends and other factors are contributing to the changes in land values.
Farmer, small businessman, stockbroker and raconteur, long-time Market To Market host Pearson has earned a national reputation for his agribusiness and rural issues acumen. A former Assistant Secretary of Agriculture for the State of Iowa, Pearson's long career in the media culminated with his being named host of Market To Market in 1991. Since then, Pearson has kept viewers informed as host of more than 600 editions of the "Weekly Journal of Rural America."
A retired officer in the Naval Reserve, Pearson lives on a farm in central Iowa, where he raises grain and livestock.
Last Updated: 10/11/2011