Be cautious in assuming new debt

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Farmland prices are 15 percent to 20 percent higher than they were a year ago, buoyed by the significantly higher commodity prices of recent months. While it might be tempting to get caught up in the euphoria of the higher real estate values, the Federal Reserve Bank of Kansas City’s Jason Henderson is urging farmers to be cautious in assuming new debt. Henderson talked about farmland values at the Ag Issues Forum sponsored by Bayer CropScience at this year’s Commodity Classic.

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