Will the Soaring Farmland Market Drop When the Federal Reserve Raises Interest Rates?

Wendong Zhang () and Albulena Basha

Center for Agricultural and Rural Development (CARD) Publications from Center for Agricultural and Rural Development (CARD) at Iowa State University

Abstract: Zhang and Basha examine the Iowa and Midwest farmland markets, which have seen tremendous momentum over the past 18 months. Both the Iowa Land Value Survey and the Chicago Federal Reserve Bank's AgLetter show that average farmland values in Iowa rose 30% last year to the highest nominal values since the 1940s. However, in late March, the Federal Reserve Bank is expected to impose the first interest rate hike in three years, which will likely be the start of six-to-seven interest rate hikes over the next two years.

Date: 2022-03
New Economics Papers: this item is included in nep-agr and nep-ban
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Persistent link: https://EconPapers.repec.org/RePEc:ias:cpaper:apr-winter-2022-5

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