Agricultural land prices U.S. should lose strength , says Fed

Drop is due to the decline in grain prices

by Estadão Content

( Search surgere that cycle valuation of the most fertile agricultural belt may be losing momentum - Photo : Shutterstock )

Prices of agricultural land in the belt U.S. producer should lose momentum in 2014 , pressured by declining grain prices after the recovery of the harvests of soybeans and corn , which are in the final harvest . Projections are from the Federal Reserve ( Fed , the central bank of the United States ) .

Survey by the St. Louis Fed highlighted a 6% fall in the value of farmland in the region , which includes parts of the Midwest and the Southeast , in the third quarter compared to the previous . In the annual comparison , however, was up 9 % . But the average price of irrigated land in the United researched by Kansas City Fed , which includes Kansas , Nebraska and Missouri increased by 1 % in the same period . Over the same interval in 2012 , the increase was 22 % in the region .

But analyzes by both the offices of the U.S. central bank for the remainder of the year suggest that the recovery cycle of the most fertile agricultural belt may be weakening. About a fifth of those interviewed by the Chicago Fed to a report released Thursday also signaled a reduction in land values ​​in the fourth quarter .

" While most bankers interviewed hoped that land prices were stable , some price indications begin to signal a decline to the extent that 2014 is approaching, especially if the revenue generated by agricultural production weaken further ," wrote Nathan Kauffman , executive of the Kansas City Fed 's report bank.

Source : Globo Rural Magazine ( Brazil ) .