Seventh district farmland values rise
Given that 57 percent of surveyed bankers predicted increased demand for farmland among farmers over the next three to six months and only 5 percent predicted decreased demand, there should continue to be a lot of interest in available agricultural ground. The high level of interest in farmland should also persist on account of the sustained strong demand among nonfarm investors; 31 percent of the survey respondents forecasted greater demand to buy farmland among nonfarm investors over the next three to six months, while 17 percent forecasted lesser demand. In addition, 45 percent of the responding bankers expected farmland transfers to grow in volume this fall and winter relative to the previous fall and winter, while 8 percent expected them to decline.
According to the survey responses, the drought was predicted to more adversely affect the net farm earnings of livestock farm operators than those of crop famers. Crop farmers were actually forecasted to experience higher levels of net cash earnings this fall and winter relative to the previous fall and winter; however, dairy, cattle and hog producers were forecasted to have lower levels.
Because of higher corn and soybean prices this fall and payouts from crop insurance to cover lost output, 48 percent of survey respondents anticipated net cash earnings from crops to rise over the next three to six months and 24 percent anticipated these earnings to fall.