Farmland Values Take a Hit
Nobody has been affected more by the trade disputes, than the farmer. Commodity prices have been under a lot of pressure and it has certainly taken it's toll on farm incomes.
And when farm incomes are down, the value of land also can decrease. And that's the case here in the upper mid west. A new report says Iowa farmland values fell 2.7 percent over the past year, in part because of trade disputes.
The Iowa Chapter of the Realtors Land Institute says the decline occurred despite federal government's trade bailout program, limited land and higher yields in some parts of Iowa.
The Des Moines Register reports the statewide average was nearly $6,800 an acre.
The institute says trade wars with Canada, China, Mexico and other countries tugged on farmland values, especially last fall, as did tightening cash for operations and higher interest rates.
The trade agreement between the United States, Canada and Mexico (USMCA) was a positive move in the right direction and major agricultural organizations endorse it. But the trade deal between the U.S. and China still is up in the air.
Source: Des Moines Register