Farmland damaged by spring flooding is at risk of declining values, according to Farmers National Company, a farm management, real estate and auction service. The company says there will be short term and longer-term effects on flooded farmland and its value, depending on if farmers can plant and grow a crop this year, and future production forecasts. Farmers National notes that the value of farmland depends on the income it can generate and how consistent production is. The less income the land produces, and the riskier production is each year, will impact long term land values. The concerns come as the Kansas City Federal Reserve Bank last week reported that overall, risks of further declines in farmland values have increased. Those risks, among other indications, include a recent increase in farmland sales in some states that suggests a decline in farmland values could be on the horizon. A Persistently low volume of land sales has contributed to the stability of farmland values through an economic downturn.
From the National Association of Farm Broadcasting.