Similar to land values, rental rates increased during the quarter by an average of 15 percent from one year ago. That’s according to a report from the Federal Reserve office in Kansas City. Non-irrigated farmland values increased about 35 percent since 2019 while cash rents grew by 25 percent over the same time period. The report says farm income and credit conditions during the quarter remained strong alongside elevated commodity prices. Looking ahead, the Fed says the outlook for farm income is softer due to a notable increase in production expenses.
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