Monday, August 17, 2009

Out Of The Woods?

I love to read news bits from Alan Nation. When I come across one that I feel is worthy, I post it here. This is another one of those worthy tid bits, written, of course, by Alan Nation of the Stockman GrassFarmer. Yet more proof that we are far from being out of the woods. In fact, I would argue the case for a round of hyper inflation to come, but that is for another time, or blog. So, here is Mr. Nation's article, enjoy.

Farmland Values Fall

Monday, 17 August 2009
The USDA’s annual report said that farmland values fell for the first time in 20 years last year. Overall average farmland values were down 3.2% to $2100 an acre, the first drop since 1987. However, farmland declines were far more severe in the Mountain States where land prices were down 11%. In Montana, land prices were down 22%, the most in the USA. In general, areas dominated by livestock saw the worst land price declines and areas dominated by grain farming the least. However, grain farmer incomes are expected to drop 20% in 2009 and this could effect Midwestern land prices. The highest price farmland was in Rhode Island where prices were $15,300 an acre. The lowest prices were in New Mexico at $480 an acre.

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