U.S. Farmland Boom May Peak After Five-Year Surge, Rabobank Says
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A five-year bull market in U.S. farmland values may peak this year as interest rates increase and crop prices decline, Rabobank International said.
Land costs may fall by as much as 15 percent in the next seven years, Sterling Liddell and Vernon Crowder, vice presidents at the bank, said in an interview. Gains in the past five years ranging from as much as from 70 percent in Nebraska to 20 percent in California were spurred by record grain and livestock prices and the lowest borrowing costs ever, Rabobank said in a report released today.