Source: FARMDOC DAILY, UNIV OF ILLINOIS, 12/21/16
 

Since the U.S. election on November 8th, interest rates on many financial instruments have increased. Interest rate increases since November 8th likely are not large enough to put much downward pressure on farmland prices. However, farmland prices could decline if interest rate increases continue.

Ten-year Treasury Note Yields
Figure 1 shows yields on ten-year constant maturity Treasury notes. Ten-year Treasury yields reached highs of over 15% in 1981. Since the 1981 highs, Treasury yields have been on a general downward trend, reaching a low of 1.37% on July 5, 2016.

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