- Land Prices in the US farm belt showed the steepest quarterly decline in 24 years.
- Value of good agriculture land in the district on April 1 was 6% lower than it was on Jan. 1.
- Any drop in land prices has negative effect on the agriculture sector because real estate is the largest source of collateral for farmers; their borrowing power is dropping along with the value of their land.
- YoY price of farmland in April 1 was 2% higher than 2008
- Many farmers have less to spend on land because farm incomes are forecast to sink 20% this year.
This will be a key developing story to watch out for in the months to come as it may have a damaging impact in declaring Agriculture as the green shoot for the future.
Source: WSJ
0 comments:
Post a Comment