date:Aug 28, 2012
These 2 primary factors and the 10-year Constant Maturity Treasury (CMT) rate comprise land's capitalized value, basically showing its cash flow based on current conditions. The higher the capitalized value, the more the land is being influenced by factors like low interest rates, thereby making it more susceptible to value declines when those factors change.
Since 2009, capitalized values have been above farmland prices, suggesting that fundamentals would support higher farmland prices than cu