Higher commodity prices coupled with government payments has land values firming across the Kansas City Federal Reserve Bank District. Kansas City Fed Regional Economist Nathan Kauffman says the increase is primarily being seen in crop land values. “This has been on the heels of the surge in crop prices, primarily. We are seeing some strength in ranch land in our district. Crop land values are up 10 percent year-over-year. There’s still strength in the market.” Kauffman says farm financials are also better than one year ago. “Liquidity improved. Loan repayment rates improved. From a banker’s perspective, lenders are seeing a softer demand for financing. As financials improve, investments are also improving, with land being one of those.”
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