An economist says farmland values remain strong despite rising interest rates.
Francisco Scott is with the Federal Reserve Bank of Kansas City. “Farm finances are quite good,” he said. “And so this is the right environment for farmland values to continue to appreciate.”
He tells Brownfield he expects the farmland market to strengthen the rest of the year, but… “We expect that this high interest rate environment will continue,” Scott said, “putting some downward pressure in terms of farmland values.”
Scott says the growth in farmland values has softened for lower-priced land and in states heavily affected by drought.