Agricultural Finance

A sharp turnaround in economic conditions along with pent up consumer demand has led to a recent uptick in headline inflation. U.S. farmland values have historically moved relatively in tandem with inflation rates, which has prompted speculation that farmland values may soon move along a similar upward trajectory. However, the relationship between farmland values and inflation is complex, and several related factors can exert material influences on how farm values ultimately trend. Ultimately, the outlook for agriculture remains positive and we expect farmland values to strengthen in the near future.