Land prices likely to decline with rising interest rates

An ag economist says a benefit of rising interest rates could be a decline to land prices and rents.

“I think it’s really important for farmers to watch the inflation rate because it’s an indicator of where interest rates are going.”

Carl Zulauf with Ohio State University says the ratio of farm land prices to rents has an inverse relationship with interest rates and any significant rate increase will likely have at least a three-year impact.

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