Rabobank says land value rates not at risk, but decrease in value possible


Land and values in the U.S. have been steadily rising for the past decade – and some are questioning whether the high values are sustainable.

Rabobanks’s Food and Agribusiness Research and Advisory group has released a report that says land value rates are not at risk due to a speculative bubble, but a decrease in values over several years is a definite possibility.

Rabobank Vice President and ag economist Vernon Crowder says several factors have been driving prices.

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If land values do adjust lower, Rabobank ecnomists believe the reduction will be moderate – and not a crash.

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Rabobank Vice President and ag economist Vernon Crowder. The Research and Advisory group’s report on land values is titled “Blowing the Farmland Bubble”. The group conducts ongoing analysis on agricultural issues that are important to the lender.