Land Values Remain Firm

Credit conditions in agriculture weakened in 2024, with rising interest rates and declining farm income. According to Nathan Kauffman, senior vice president, Federal Reserve Bank of Kansas City, farmland values have remained steady, “Despite declines in repayment rates, tighter profit margins, higher interest rates, and uncertainty, farm real estate values have held firm.” However, many farmers are restructuring debt to manage financial strain, a trend the Fed is watching closely. Kaufman addressed the USDA Ag Outlook Forum.