by U.S. Dept. of Agriculture, Economic Research Service, ERS-NASS [distributor in [Washington, DC], Rockville, MD .
Written in English
|Statement||Karl Gertel, Patrick Canning|
|Series||Technical bulletin -- no. 1778, Technical bulletin (United States. Dept. of Agriculture) -- no. 1778|
|Contributions||Canning, Patrick N., United States. Dept. of Agriculture. Economic Research Service|
|The Physical Object|
|Pagination||v, 17 p. :|
|Number of Pages||17|
Returns, interest rates, and cropland prices in selected regions / By Karl Gertel, Patrick. Canning and United States. Dept. of Agriculture. Economic Research Service. Abstract "May "--P. [iii].Cover es bibliographical references (p. ).Mode of access: Internet. The interest rates offered on almost all of Regions Bank’s accounts are rock bottom, and come with high fees to boot. The one exception is its month Variable Rate IRA CD (an oddly specific account type), but even in that case, you can earn higher rates on fixed-rate month CDs with other banks. Detailed land sale information and trends at state, regional and county levels. Choices Magazine, a publication of Agricultural & Applied Economics Association 1st Quarter • 33(1) Understanding Farmland Values in a Changing Interest Rate Environment Bruce J. Sherrick Bruce J. Sherrick ([email protected]) holds the Fruin Professorship in Farmland Economics and is Director of the TIAA Center for Farmland Research, Department of Agricultural and Consumer .
Cropland prices across the United States have appreciated at record levels in recent years. After a U.S. recession, in which a bubble in real estate prices was a factor, some have questioned if cropland prices are in a bubble. Schnitkey, Sherrick, and Kuethe () show that the increase in cropland returns and the decline in interest rates have justified the. Rental rates measure the value of using land for agricultural production. Between and , average U.S. cropland rental rates decreased by percent to $ Cropland rental rates increased the most in the Southeast (up percent to $94 per acre) and the Delta States (up percent to $ per acre). North Dakota: Average cropland values, up % to $1, per acre. Average pasture values, up % to $ per acre. Average cropland rental rates, up from $65 per acre in to $70 per acre in. List of the most common Bloomberg functions and shortcuts for equity, fixed income, news, financials, company information. In investment banking, equity research, capital markets you have to learn how to use Bloomberg Terminal to get financial information, share prices, transactions, etc. .
If year Treasury note rates are fixed at the level (6 percent), the cropland PTV ratios stay above in This indicates that current returns would not have supported farmland values during this period without falling interest rates. As a result, future increases in interest rates could lead to a decline in farmland values. Cap rates (c) and farmland values per acre (V) assuming alternative net returns to farmland per acre (R) and year Treasury yields (r). Other parameter values assumed are: S&P annual return (m) equal to %, rate of growth in net returns to farmland (g) equal to %, and beta between S&P and farmland returns (β) equal to Rates do compare favorably to other regional banks like Fifth Third Bank, but that doesn’t change the fact that they are low. You can get the most competitive rates from Regions Bank by opening a promotional CD, but the $10, minimum is prohibitive for many. A bank like Capital One has no minimum deposit for its CDs and has higher interest. per acre in to $3, per acre in Cropland appreciated faster than pastureland. In , cropland values increased most in the Corn Belt, Northern Plains, Lake States, and Delta States. In , these same regions saw lower land appreciation than other regions, even depreciation, reflecting the drop in commodity prices.