Are you kidding me? A 38.3% Increase in nonirrigated crop land values in Nebraska? Plus increases of 31% in Iowa and 30.9% in South Dakota as well as 26.4% in North Dakota along with 27.7% in Minnesota.
All I can say is WOW! And to follow that up with no way can we sustain those types of gains.
For those who are selling now...it is fantastic. For those not...it means a huge increase in tax values next year.
Most states posted large increases...record increases for many of them...and many banking experts in the Kansas City and Chicago Federal Reserve districts are predicting continued increases in values for 2012.
Delinquent farm loans dropped in 2011 and less farmers were borrowing money from the banks due to increased crop values and more cash on hand. This, in turn, is forcing the banks to offer more competitive rates at a lower cost to the farmer.
As it stands today...2012 is starting out as a farmers dream. I hope it stays that way...but I do recommend that all ag producers have a plan in place early this year for input costs and crop sale plans for both up and down markets.
Preparing for both markets will help prevent 2012 from going from a dream market to a nightmare!!
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