U.S. FARM LAND VALUE DECLINE MODERATES--USDA
The value of U.S. farmland declined
again last year, but less than in the previous year, the U.S.
Agriculture Department said.
    In a summary of its Agricultural Resources Report, the
department said on February 1, 1987, the average value per acre
of farmland stood at 548 dlrs, down eight pct from a year
earlier. Values dropped 12 pct in 1985, it noted.
    Real values, which are adjusted for inflation, also
declined less than in 1985, because of the low rate of
inflation in 1986.
    Real values fell 10 pct compared to 14 pct in 1985, it
said.
    The department said in the Corn Belt and Northern Plains,
which suffered severe losses in the past five years, declines
appear to be moderating. Also there are reports of stable
values in some areas of the Corn Belt, it noted.
    The continuing downturn in values reflects the large
acreage of land offered for sale relative to demand, concern 
about lower crop prices, and uncertainty over farm programs,
the department said.
    Those factors tend to offset the effects of relatively high
cash farm income, lower interest rates, and reduced operating
expenses, it said.
 Reuter
