The Federal Reserve Bank of Kansas City recently reported that farm land values increased during the first quarter, which should bode well for those who use agricultural equipment.
According to the bank, values of cropland increased during the first three months of the year when compared to the first quarter of 2009. Land dedicated to ranches also saw increases in value.
"Most of the 262 bankers surveyed expect farmland values to hold steady in the coming months," the bank said.
While land values increased, incomes for farm operations dropped a bit during the first quarter. Crop prices were said to have dropped due to the expectation of additional supplies of soybeans and corn. However, ranchers may have seen profits improve, as the price of feed dropped while livestock prices increased.
A combination of increasing land values and a drop in incomes resulted in credit conditions for farmers staying stable. Meanwhile, bankers said there was enough money to available to meet farm loan needs.
While some producers have seen the loan market remain steady, others who want to start farming may find it difficult to secure the property they need. As a result, the U.S. Department of Agriculture announced a program that will give retired farmers the chance to pass on their land to up-and-coming producers.