Farm land and interest rates

Rising interest rates in the United States strengthens the dollar, makes us a little less export competitive. But Ag economist Seth Meyer says this is not a normal situation. Commodity prices are very high. Demand also continues high in light of the conflict in Ukraine, short global supplies of commodities like wheat and weather, concerns for other crops here in the U.S.. As to other possible effects of rising interest rates. In times past, when interest rates have gone up, it has affected the value of agricultural land. And Seth Meyers says all else equal. Speaker3: The favorite thing economists say, all else equal. Yeah, this this should put a little downward pressure on assets like land. But again, I think in the short run, the question is how aggressive does the Fed have to be? And when we look back in 12 months, where is the economy sitting as a result? So again, long run, yes. If this is a part of a long run period where we see interest rates rising over time and sustain, yeah, then that's overall a negative effect on land. Speaker1: But again, a lot of ifs and maybes involved in that projection. However, Meyer is not gun shy on making this projection for farmers.