Experts Fear Minnesota Farmland Prices Declining
WORTHINGTON (AP) - Experts say Minnesota farmers could be impacted by a decline in farmland prices.
The Federal Reserve Bank of Minneapolis found in its most recent quarterly survey that the state's farmland prices are on the decline. Economist Joe Mahon says prices per acre are about 4.5 percent less than they were a year ago.
That means the value of Minnesota's farmland, which is worth about $100 billion, has fallen by $4 billion across the state.
Mahon says farmland prices began to fall when the selling price of corn reached unprofitable levels.
Others believe farmland prices are stable due to other factors.
Randy Dickhut is vice president of a company that sells Midwestern farmland. He says farmers and landowners have continued to benefit from low-interest rates.