Decreased Demand for Nebraska Farmland Linked to Drop in Corn Prices
LINCOLN, Neb. (AP) -- The drop in corn prices apparently has dampened demand for farmland in Nebraska and cooled off the hot seller's market.
Two reports suggest the rise in farmland value has slowed.
A report by Farm Credit Services of America says that during the second half of last year, Nebraska farmland value increased at the slowest rate seen in several years, rising less than 1 percent.
And a regional farmland price index kept by Creighton University economist Ernie Goss hit its lowest level since 2009. A January report issued last week said the index dropped for the second month.
Corn prices dropped to less than $5 a bushel last year from more than $6 a bushel in 2012.