Bankers Expect Farmland Prices to Continue Decline

For a ninth straight month, the overall index rose above growth neutral. On average, bankers estimated that farmland prices declined by 4.0 percent over the past 12 months and expect farmland prices to fall by another 3.2 percent over the next 12 months. Approximately one-fifth of bank CEOs expect low farm income and falling farmland prices to present the greatest challenge to banking operations over the next 5 years. Loan demand by farmers remains strong.