Despite the severe drought still gripping the U.S., farmland values continued to rise across most crop-growing regions in the third quarter. This is according to bankers surveyed in the latest report from the Kansas City Fed.
By Greyson S. Colvin:High commodity prices and net farm income have driven U.S. farmland values to record highs. The Federal Reserve Bank of Chicago reported that farmland values rose 13% over the last twelve months. Strong demand for farmland from farmers and investors has led to some irrational prices, including a $21,900 per acre sale in Sioux County, Iowa.
Greyson S. Colvin submits:Record grain prices and farmer income drove farmland prices to double digit gains in the last twelve months, according to the Federal Reserve Bank of Kansas City. The farmland market displayed the strongest year-over-year gains since 2007-08, as high farm income attracted farmer and investors to the market.
While most Canadian oil and gas producers remain intent on maintaining output, oil services companies are signaling a downturn next year.
The Canadian Association of Oilwell Drilling Contractors (CAODC) expects a 10% decline in drilling activity in 2015 compared to this year, based on a West Texas Intermediate price of US$85.
T. Marc Schober submits:The rural economy has soared to its highest level in nearly four years, as rising farmland values, recovering employment market, and improving banking conditions have improved for the rural economic outlook.