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Farmland Rally May Ease as Crop Prices Drop, Economists Say

The pace of gains in U.S. farmland values may ease as crop prices decline and fertilizer and fuel costs rise, according to economists including Ken Keegan at Farm Credit Services of America.

Declining profit indicates that farmers, who dominate rural land purchases, probably won’t bid prices higher, Ken Keegan, the chief risk officer at Farm Credit Services in Omaha, Nebraska, said today at a forum in Washington. Low interest rates and agricultural debt make a plunge from a record rally in farmland unlikely, he said.