Rabu, 25 Mei 2011

Two Impending Shocks to Current Farmland Prices: Falling Crop Prices or Rising Interest Rates

photo: flickrNote that this post is taken from a report by Jason Henderson and Brian Briggeman for the Federal Reserve Bank of Kansas City, "What are the Risks in Today’s Farmland Market?"Capitalizing Future RevenuesIf historical relationships hold true, Midwestern cropland values hinge on farm revenues, interest rates and their relationship with the capitalization rate. Assuming average